Julius Young — Founder & Editor-in-Chief, Vantage
The EU cleared the Paramount-WBD deal this morning. Sixty-five jurisdictions have said yes. One California federal court has said wait.
The European Commission cleared the Paramount-WBD merger this morning, conditionally. Sixty-five jurisdictions have now either approved the transaction or declined to challenge it. The one jurisdiction still holding is a federal courtroom in California, where twelve state attorneys general argue the same deal the EU just blessed would cause irreparable harm to American consumers. The conditions Brussels imposed are revealing: Paramount must divest its stake in United International Pictures — the European film distribution joint venture it shares with Universal — within thirteen months, and agree not to enter any new film distribution arrangement with Universal in Europe for ten years. The EU's broader competitive analysis found sufficient alternative competitors in the European Economic Area including Disney, Universal, Sony, Amazon MGM, A24, Lionsgate, and European studios — a significantly broader market definition than the state AGs are using, which focuses narrowly on the Big Five Hollywood majors dropping to four. The EU ruling is not binding on a US federal court. But Paramount's statement noted it "directly refutes key assumptions that underpin the State AGs' complaint." Every line of the EU's competitive analysis will appear in Paramount's briefing for the preliminary injunction hearing. Related: Paramount-WBD Merger Paused and The EU Counted A24 as a Competitor. The State AGs Don't.