San francisco: A coalition of 12 US state attorneys general on Monday filed a lawsuit seeking to block Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery, arguing the deal would unlawfully reduce competition in the entertainment industry.

According to Anadolu Agency, California Attorney General Rob Bonta, who is leading the coalition, said the merger would combine two of Hollywood's five major film distributors and two of the five major basic cable channel owners. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," Bonta said in a statement.

The lawsuit claims that the combined company would control nearly one-third of US theatrical motion pictures and nearly one-third of basic cable programming if the deal goes through. The attorneys general have asked Paramount and Warner Bros. not to complete the merger until the judicial process concludes and have stated they would seek a temporary restraining order if necessary.

Filed in the US District Court for the Northern District of California, the lawsuit alleges that the merger violates Section 7 of the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly. The coalition is made up of the attorneys general of Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

This legal action comes despite the US Justice Department's Antitrust Division concluding in June that the proposed acquisition would not substantially harm competition.