The union argued that the merger would lead to a great loss of employment.
The Writers Guild of America (WGA) joined the legal battle against the proposed Paramount Global–Skydance Media merger, filing a lawsuit that argues the transaction violates U.S. antitrust laws. The union aligned itself with a challenge previously brought by twelve states, claiming the deal would further consolidate the entertainment industry, reduce competition and ultimately hurt workers, creators and consumers.
“Screenwriters will earn less and will have less employment opportunities.” WGA said in a statement.
The union argued that the merger would lead to a great loss of employment, and is aimed at cutting operating costs in light of the drastic cut in the number of competitors in the sector.
This coalition of attorneys general, lead by California and New York, filed a lawsuit seeking to block of the multimillion-dollar merger, arguing that it constitutes a monopoly, which is illegal.
The complaint specifically alleges, that the transaction violates Section 7 of the Clayton Act, that strictly prohibits agreements between businesses that limit the competition or promote the creation of a monopoly.
Last June, DOJ approved the acquisition of Warner, after the authorities concluded that the transaction would not harm the competition in the television markets, (streaming) online content platforms, and content production markets.
The Department of Justice stated that compiled evidence suggests that the merge could increase the competition in the entertainment industry by strengthening the company’s ability to compete with leading actors in the streaming and digital media market.
However, the European Union is still reviewing the agreement for approval, with a tentative deadline set for July 22.
