The United Kingdom’s Competition and Markets Authority (CMA) has opened a formal investigation into Paramount Skydance’s planned $110 billion purchase of Warner Bros. Discovery. The regulator will assess whether the merger could reduce competition in the U.K. media market.

The CMA said it will review the deal in a first-phase inquiry. It will decide whether to approve the merger or escalate it to a deeper investigation. The decision is due by Aug. 7, although the deadline may change.

Concerns over market competition

The regulator will focus on whether the deal could weaken competition in any part of the U.K. entertainment industry. It will also examine possible effects on consumers and media companies.

The CMA completed an information-gathering stage before starting the probe. It invited industry players and other stakeholders to share views on the deal’s impact. The consultation period ran from April 13 to 27.

Background of the deal

Paramount secured the deal in February after a bidding war with Netflix. The agreement would combine major media assets, including CNN and CBS, under one company. Paramount aims to strengthen its position against global streaming competitors.

Growing global scrutiny

The merger has already faced regulatory review in North America and Europe. Industry groups representing writers, actors, filmmakers, and theatre operators have raised concerns about its impact on the entertainment sector.

Legal pressure is also increasing in the United States. Reuters reported last week that California, New York, and other states were preparing a lawsuit to block the deal. A spokesperson for California Attorney General Rob Bonta’s office said California’s investigation remains active but declined further comment.

The CMA investigation adds another major hurdle for Paramount as it pushes for approval of the transaction.