- Netflix’s offer for Warner Bros. Discovery has just been the subject of a consumer class action
- The complaint was filed by HBO Max subscriber Michelle Fendelander, who expressed concern about the possible consequences of the deal on the industry.
- Netflix responded to Fendelander’s lawsuit, calling it ‘baseless’
Netflix’s ongoing legal battle to acquire Warner Bros. Discovery (WBD) just got personal, and now the company is facing its first class-action lawsuit – brought by one HBO Max subscriber of all people.
The lawsuit, led by Las Vegas resident and HBO Max stalwart Michelle Fendelander, was filed Monday in a U.S. District Court in San Jose. Fendelander sued Netflix, fearing that its offer to purchase WBD would reduce competition among streaming services, thereby harming the entertainment industry.
Last week, Netflix agreed to an $82.7 billion deal to buy WBD, meaning all of HBO’s shows and its flagship streaming platform HBO Max would become part of the Netflix family – including popular franchises such as Harry Potter, Game of Thronesand the DC Comics franchises.
Since the deal was revealed, it has sparked a wave of concern among consumers, particularly regarding the potential impact it could have on cinemas and theatrical releases. This is also a concern of Fendelander who, in his lawsuit, asked the court to order an injunction to prevent Netflix from merging with WBD, sharing the following:
“American consumers – including SVOD buyers like Plaintiff, who subscribe to HBO Max – will bear the brunt of this diminished competition, paying higher prices and receiving degraded and diminished service for their money.”
However, Netflix won’t go down without a fight given its reputation as one of the best streaming services, and responded to Fendelander considering his lawsuit “simply an attempt by the plaintiffs’ bar to draw all the attention to the deal.” Amid the legal chaos, Netflix has since reassured consumers that it intends to honor Warner Bros’ commitment to showing films in theaters – but Fendelander remains unconvinced.
Not only could this company’s merger lead to further price increases – for which Netflix is already facing major backlash – but Fendelander expressed concern about the creative repercussions, sharing another statement in his lawsuit:
“Eliminating this rivalry is likely to reduce overall content production, decrease the diversity and quality of available content, and reduce the spectrum of creative voices appearing on major streaming platforms.”
The Netflix-WBD legal battle has yet to reach a conclusion, but its dramatic escalation has caught the attention of Congress, and now even Trump could have a say in whether the deal moves forward. Netflix seems determined to prevail, but with Paramount Skydance’s latest counteroffer of $108.4 billion now on the table, it could go in either direction.
Follow TechRadar on Google News And add us as your favorite source to get our news, reviews and expert opinions in your feeds. Make sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp Also.
