A coalition of 12 state attorneys general is taking legal action against the $110 billion deal between Paramount Skydance and Warner Bros. Discovery (WBD), arguing that it would stifle competition in key areas of the entertainment industry.

The lawsuit, led by California Attorney General Rob Bonta, claims that the merger violates the Clayton Act, which prohibits mergers that could lessen competition or create a monopoly. The attorneys general argue that the deal would reduce opportunities for important stories to come to life and limit audience exposure to diverse perspectives.

David Ellison, CEO of Paramount, has maintained that the deal is on track to close by September, despite concerns from filmmakers and industry professionals who fear it will further consolidate the U.S. media landscape. However, the merger has already received approval from WBD shareholders and clearance from the U.S. Department of Justice, which stated there would be no significant harm to competition or consumers.

The deal would combine two major film studios and streaming platforms, creating one of the largest portfolios of television networks. Critics argue that such a consolidation could lead to higher prices for content and fewer opportunities for new stories to emerge in the media market.