The Writers Guild of America West and Writers Guild of America East (jointly WGA) have filed a suit to block the proposed merger of Paramount Skydance and Warner Bros Discovery on the grounds that it violates federal antitrust law and would cause specific harm to writers.

“With fewer competitors, the merged Paramount-Warner Bros. entity would have both the incentive and the ability to lower costs by suppressing writers’ wages and reducing output. Writers will be paid less and have fewer employment opportunities,” the WGA complaint states.

The complaint details how the merger would reduce opportunities, lower pay and worsen working conditions for writers. The elimination of a key competitor and the creation of a new dominant firm would result in reduction in the quantity and variety of theatrical films and television series as the merged company would have a greater ability to reduce output. Furthermore, the complaint asserts that the merger would increase the ability for the few remaining companies to tacitly coordinate to further suppress competition for writers’ work.

“If Paramount succeeds in buying Warner Bros., the merged firm will be the largest buyer of original film and television programming in the United States,” said WGAW President Michele Mulroney. “This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film. We applaud the dozen state Attorneys General who have stepped up to enforce our antitrust laws and are proud to file suit alongside them.”

Since Paramount’s proposed acquisition of Warner BrosvDiscovery was announced, the WGA has raised awareness about this threat to State Attorney General offices and federal legislators, submitted comments to regulatory agencies and Congress, and participated in press events as part of a coalition of democracy and arts organisations.

The WGA complaint focuses on the anticompetitive effects of the merger in three markets for writing services: anticipated top grossing films, episodic television and streaming series, and overall deals.

“The Writers Guild of America will not stand idly by as Paramount attempts to violate our country’s antitrust laws and deepen the contraction entertainment workers already feel,” said WGAE President Tom Fontana. “This proposed combined entity would be the largest employer of writers, with tremendous power to suppress our wages, eliminate opportunities for emerging writers, cut jobs across the industry, and produce less programming, effecting the range of storytelling. This merger is not inevitable and we are fighting to stop it.”

The WGA has also publicly opposed the recent mergers of Disney-Fox, Amazon-MGM, AT&T-Time Warner, and Comcast-Time Warner Cable, among others.

Paramount claims the merger would expand, not shrink, opportunities for writers and has promised to keep producing movies and commissioning from independent companies.

The WGA’s legal action follows a lawsuit from 12 states, led by California, which warned the merger would stifle competition and reduce options for consumers.

Paramount says the states’ claims are unfounded and is prepared to defend the merger in court.

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Tags: paramount, warner bros discovery, WGA, Writer’s Guild of America