US Consumer Files Lawsuit Opposing Netflix's Attempt to Acquire Warner Bros.

Concerns Over Higher Subscription Fees
Due to Reduced Market Competition
Class Action Filed Under the Clayton Act

Exterior view of Netflix headquarters located in Los Angeles (LA), USA. Photo by Reuters Yonhap News

An American consumer has reportedly filed a lawsuit seeking to block Netflix's acquisition of Warner Bros., expressing concerns that the deal could reduce market competition and lead to higher subscription fees.

According to Reuters and Bloomberg on December 9 (local time), a consumer currently using Warner Bros.' streaming service HBO Max submitted a proposed class action lawsuit against Netflix to the U.S. District Court for the Northern District of California on the same day.

This lawsuit was filed under the Clayton Act, which prohibits mergers that weaken competition and grants individuals the right to sue. The Clayton Act is an antitrust law in the United States designed to prevent collusion, monopolies, and unfair acquisitions between companies in order to protect competition.

Previously, on December 5, Netflix announced that it had signed a deal to acquire Warner Bros.' film and TV studio, as well as business divisions including HBO Max, for 72 billion dollars (approximately 106 trillion won). However, the merger must be approved by the Donald Trump administration.

The plaintiff argued that the recently agreed deal between Netflix and Warner Bros. poses a risk of weakening competition in the U.S. subscription-based video streaming market. If the two companies merge, their combined market share in the U.S. subscription streaming market is estimated to exceed 30%.

The plaintiff also pointed out that "Netflix has repeatedly demonstrated a willingness to raise subscription fees even in a competitive environment," and argued that this merger "will significantly increase market concentration in an already rigid and oligopolistic market."

In particular, the lawsuit raised concerns that if Netflix acquires Warner Bros., it would eliminate HBO Max, one of the main competing platforms, and give Netflix control over major Warner Bros. titles such as the Harry Potter and DC Comics film series, as well as the drama Game of Thrones.

Netflix did not immediately respond to requests for comment.

Meanwhile, President Trump, at the Kennedy Center Honors ceremony on December 7, praised Netflix's acquisition of Warner Bros. as "a truly remarkable achievement," but also remarked, "Their market share is so large that we'll have to see what happens."