- Netflix’s bid for Warner Bros Discovery has just been hit by a consumer class action lawsuit
- It was filed by HBO Max subscriber Michelle Fendelander, who has expressed concern about what the deal could do for the industry
- Netflix has responded to Fendelander’s lawsuit and considers it “meritless”
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 — issued by an HBO Max subscriber of all people.
The lawsuit, led by Las Vegas resident and loyal HBO Max member Michelle Fendelander, was filed Monday in U.S. District Court in San Jose. Fendelander sued Netflix out of concern that its offer to buy WBD will lessen competition among streaming services, harming the entertainment industry as a result.
Last week, Netflix agreed to an $82.7 billion deal to buy WBD, meaning all HBO shows and its flagship streaming platform HBO Max will 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 for Fendelander, who in her lawsuit has asked the court to order an injunction to prevent Netflix from merging with WBD, sharing the following:
“American consumers — including SVOD buyers like plaintiff, an HBO Max subscriber — will bear the brunt of this diminished competition, paying higher prices and receiving degraded and discounted services for their money.”
However, Netflix won’t go down without a fight given its reputation as one of the best streaming services out there, and has responded that Fendelander views her lawsuit as ‘just an attempt by the plaintiff to take advantage of all the attention on the deal’. Amidst the legal chaos, Netflix has since assured consumers that it plans to uphold Warner Bros’ commitment to showing movies 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 has voiced her concerns about the creative ramifications, sharing another statement in her lawsuit:
“The elimination of this rivalry is likely to reduce overall content output, diminish the diversity and quality of content available, and narrow the spectrum of creative voices appearing on major streaming platforms.”
The Netflix-WBD legal battle has yet to reach a conclusion, but its dramatic build-up has caught the attention of Congress, and now even Trump can have his say on whether the deal goes forward. Netflix seems determined to come out on top, but with the latest $108.4 billion Paramount Skydance counterbid now on the table, it could go either way.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews and opinions in your feeds. Be sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, video unboxings, and get regular updates from us on WhatsApp also.
