California Attorney General Rob Bonta criticized the federal government for largely abandoning its antitrust oversight role, emphasizing that it is now up to California and other states to protect consumers’ interests.
Bonta, the leading law enforcement official in the state, addressed an audience at a Capitol Forum conference in Beverly Hills on antitrust matters and the future of Hollywood. His remarks followed the U.S. Department of Justice reaching a settlement with Live Nation and Ticketmaster just a week into an impactful trial, leaving state attorneys general to continue the battle independently.
The Justice Department’s shift highlighted a significant gap in antitrust enforcement. State attorneys general, particularly from Democrat-led states, assert that their roles are becoming increasingly vital in challenging alleged anti-competitive practices.
“President Trump has effectively relinquished the federal administration’s duty to hold large corporations accountable and to maintain a competitive marketplace,” Bonta stated.
His remarks coincide with another major merger in Hollywood that appears to be progressing favorably through federal review, seemingly with Trump’s implicit approval: Paramount Skydance’s $110 billion bid for Warner Bros. Discovery.
The merger, announced late last month, has caused concern among Hollywood unions and some antitrust analysts. It would merge iconic film studios, extensive television production divisions, and two notable news outlets, CBS News and CNN, in addition to multiple cable channels.
“Paramount and Warner Bros. haven’t yet passed regulatory scrutiny,” Bonta stated. “My office is currently investigating [the deal], and we plan to conduct a thorough review.”
California might file its own lawsuit to block Paramount’s acquisition or collaborate with other state attorneys general to initiate legal action aimed at hindering the deal or securing concessions—even if the Justice Department clears David Ellison’s acquisition.
Bonta expressed several concerns, including a persistent contraction in Hollywood’s labor market, the merging of streaming services—such as Paramount+, HBO Max, Pluto, and Discovery+—and the potential for increased prices and decreased wages.
“No sector embodies California quite like the entertainment industry,” Bonta remarked. “It’s ingrained in California’s essence.”
California Attorney General Rob Bonta pledged to scrutinize Paramount Skydance’s proposed acquisition of Warner Bros. Discovery.
(Paul Kuroda/For The Times)
Paramount sought Justice Department approval in December.
This process initiated the regulatory review timeline. A crucial deadline for the Justice Department to voice concerns regarding Paramount’s acquisition of Warner passed last month without any comment from Washington.
Paramount indicated it could finalize its deal by the end of September.
The mastermind behind Paramount’s approach, Chief Legal Officer Makan Delrahim, presented his own keynote address, emphasizing that the Ellison-family’s acquisition of Warner Bros. would enhance competition and benefit the creative community.
“Paramount’s transaction with Warner is a chance to increase output, providing more movies, shows, and various content for consumers,” Delrahim noted, asserting it would lead to “more job opportunities,” especially in Southern California, which has been experiencing a production shift to other states and countries.
Delrahim acknowledged that Paramount was motivated to acquire Warner Bros.—eventually securing the deal after Netflix withdrew—because it lacks the size to compete in a sector dominated by tech giants.
He criticized the proposed Netflix acquisition, suggesting it might not pass regulatory scrutiny due to Netflix’s significant position in the streaming arena.
Paramount must still garner support from Warner shareholders and obtain the necessary regulatory approvals from the Justice Department, state attorneys general, and international governments.
“This acquisition represents a substantial benefit for Los Angeles, California, and all communities that support filmmaking,” Delrahim stated.
Tech billionaire Larry Ellison has personally guaranteed the $45.7 billion equity required for the transaction. The company would incur over $60 billion in debt, raising concerns among Hollywood employees about potential cost-cutting measures and layoffs.
“What Paramount is doing is … paying $110 billion to eliminate a competitor,” remarked attorney Ethan E. Litwin, a former counsel for television networks, who also spoke at the conference. “When you eliminate a significant competitor in a highly consolidated sector, you are removing choices for projects.”
Bonta refrained from commenting on whether he would attempt to block the Paramount-Warner merger.
The Progressive State Leaders Committee, an offshoot of the Democratic Attorneys General Association, appointed Rohit Chopra, a former director of the Consumer Financial Protection Bureau and ex-commissioner of the Federal Trade Commission, as a senior advisor in December. He will assist in coordinating efforts as the group, including Bonta, engages in antitrust enforcement initiatives.
“The federal government is simply not upholding the law,” Chopra stated during the conference on Thursday. “Our states are truly the last line of defense.”
