A legal challenge has emerged against Netflix’s proposed takeover of Warner Bros., as an HBO Max subscriber has filed a class-action lawsuit seeking to halt the multi-billion-dollar deal.
The lawsuit was submitted by Michelle Fendelander, a Las Vegas resident and longtime HBO Max subscriber who says she has never held a Netflix account. Filed in U.S. District Court in San Jose, the complaint argues that Netflix’s planned acquisition of Warner Bros. would significantly weaken competition in the U.S. subscription video-on-demand market.
Warner Bros. Discovery’s streaming service, HBO Max, hosts a vast catalogue that includes Game of Thrones, Harry Potter, the DC Universe overseen by James Gunn, and recent hits such as Barbie. Under Netflix’s proposal, valued at approximately $72 billion, much of that content is expected to migrate to Netflix once the deal is finalised.
According to the lawsuit, merging Warner Bros. with Netflix would harm consumers by reducing choice and driving prices higher. Fendelander alleges that reduced competition would lead to fewer original productions, lower-quality programming, and a narrower range of creative voices being represented across major streaming platforms. The filing asks the court to issue an injunction that would block the merger entirely.
“Consumers will be the ones paying the price,” the lawsuit states, claiming subscribers would face increased costs while receiving less value in return.
Netflix has dismissed the legal action, calling it unfounded. In a statement, the company said it believes the lawsuit is “without merit” and amounts to an attempt to capitalize on public attention surrounding the deal.
The proposed acquisition has already drawn political scrutiny. Several members of Congress have raised antitrust concerns, while Paramount has reportedly launched a competing hostile bid valued at $108.4 billion in an effort to acquire Warner Bros. itself.
In response to growing customer unease, Netflix recently emailed subscribers to reassure them that no immediate changes are forthcoming. The message clarified that Netflix and HBO Max will continue to operate as separate platforms until the transaction is completed and emphasized that existing subscription plans will remain unchanged for now. Netflix also stated that regulatory and shareholder approvals are still required, with the company expecting the process to take between 12 and 18 months. That timeline puts the earliest possible closing date in late 2026, with completion potentially stretching into mid-2027.
While Netflix stopped short of ruling out future price increases, analysts and industry observers expect subscription costs to rise once Warner Bros. content is formally integrated.
The deal’s prospects remain uncertain. Senator Elizabeth Warren has urged the Department of Justice to closely examine what she described as a potential “anti-monopoly nightmare.” She warned that the acquisition could result in job losses and higher prices for consumers and called on federal regulators to apply antitrust laws rigorously.
Netflix, for its part, maintains that the acquisition would ultimately benefit viewers and investors by delivering greater value. Whether regulators — and now the courts — will agree remains to be seen.
