A law professor recently warned that Warner Bros. Discovery may be close to breaching antitrust laws following the conglomerate's stunning cancellation of Batgirl.

Speaking to The Hollywood Reporter, University of Southern California law professor Jonathan Barnett expressed concern about the market power now wielded by the recently merged Warner Bros. Discovery Inc., as well as some of the company's "post-closing actions." He also queried the company's likelihood to act in the best interests of media consumers, saying, "You have to ask if this combined entity has sufficient market share to act unilaterally with respect to the traditional parameters of competition, like pricing and output."

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Texas Democrat Rep. Joaquin Castro also argued the recent spending cuts on content raise antitrust concerns, saying there had "already been large cuts throughout the company and they’re anticipating more.” He also lamented the decision to scrap Batgirl as an opportunity lost for meaningful on-screen representation, stating, "This incredibly gifted Latina actress and wonderful story [will] get thrown down the drain for a tax write-off."

Antitrust laws seek to promote innovation, choice and product variety in American industries. Mergers are only permitted to go ahead if the deal does not incentivize a company to "withdraw a product that a significant number of customers strongly prefer." Even before the merger of Warner Bros. and Discovery, lawmakers raised concerns that the move could limit inclusive programming; something which appears to have happened almost immediately with the sudden cancellation of Batgirl, fronted by the Latina actor Leslie Grace. WBD scrapped the film after "irredeemable" test screenings, with CEO David Zaslav saying the move was done to "protect the DC brand". A Warner Bros. Discovery representative later added that the decision to cancel "reflects our leadership’s strategic shift as it relates to the DC universe and HBO Max."

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Since the merger was completed in April, Zaslav has been quick to lay out a new direction for the company, including a 10-year-plan for DC movies in an attempt to replicate the success of Marvel Studios, as well as sweeping cuts in a bid to save $3 billion per year. The company's decision to also cancel the Latin-led Gordita Chronicles has further inflamed antitrust concerns, with accusations being leveled that WBD is under-representing the Latin community in its programming.

Despite the cutbacks, Warner Bros. Discovery has promised a slate of new content is coming down the pipeline, as well as a "massive amount of TV and motion picture" that the company is sitting on that could be brought to streaming services soon. The company has put much of its focus on HBO Max, so it is believed much of the legacy content will appear there, but CEO David Zaslav said the company may sell some series to other streaming sites.

Source: The Hollywood Reporter