"Subscription Fees Will Skyrocket"…Class Action Lawsuit Against Netflix-Warner Merger by U.S. Consumers

◇ "Subscription Fee Increase is Obvious"…Class Action Lawsuit Filed Against Netflix

A consumer lawsuit has been filed to block Netflix's acquisition of Warner Brothers in the U.S. streaming market. Concerns have been raised that if the merger goes through, market competition will weaken and subscription fees will increase.

According to Reuters and Bloomberg on the 9th (local time), a consumer using Warner Brothers' streaming service 'HBO Max' submitted a class action proposal against Netflix in the Northern District Court of California.

The plaintiff argued that the recently agreed acquisition deal between the two companies poses a significant risk of weakening competition in the U.S. subscription video streaming market. They pointed out Netflix's history of continuously raising subscription fees even in a competitive environment, warning that this merger would further increase the concentration in an already oligopolistic market.

◇ 〈Game of Thrones〉·〈Harry Potter〉 Monopoly Concerns…Opposition to 30% Market Control Spreads

In particular, if the merger is completed, the major competing platform 'HBO Max' will disappear, and Netflix will gain exclusive control over Warner Brothers' key content such as the 〈Harry Potter〉 series, DC Comics movies, and 〈Game of Thrones〉.

This lawsuit was filed based on the 'Clayton Act', which prohibits mergers that hinder competition and grants individuals the right to sue. The plaintiffs requested the court to issue an injunction to block the merger.

According to Reuters, the law firm Batay Dun, representing the lawsuit, is known to have conducted multiple antitrust lawsuits against major entertainment and financial companies.

Netflix announced on the 5th that it had finalized a deal to acquire Warner Brothers' film and TV studio and major business segments, including HBO Max, for $72 billion (approximately 106 trillion won). If the two companies merge, it is expected to account for more than 30% of the U.S. subscription streaming market.

However, this merger proposal must receive final approval from the U.S. federal government to be executed. Netflix did not immediately respond to requests for comments on the matter.