EU approves Paramount's acquisition of Warner Bros. Discovery with conditions

The Commission examined the merger's impact across several markets, including film production and distribution, audiovisual content, television channels and streaming services.

Its investigation found that competition in film production would remain strong, with major studios such as Disney, Universal and Sony, along with smaller U.S. and European studios, continuing to compete with the merged company.

However, regulators raised concerns about film distribution in countries where Paramount already works with Universal through their joint venture, United International Pictures (UIP). The Commission said adding Warner's films to that partnership could have increased market concentration and weakened competition, potentially leading to less favorable distribution and rental terms for cinema operators and, ultimately, consumers.

To address those concerns, Paramount agreed to sell its stake in UIP within 13 months after the transaction closes. The company also committed for the next 10 years not to enter distribution agreements with Universal in the EEA and not to reorganize the distribution of Paramount or Warner films in ways that would combine them with Universal's or Disney's distribution networks in specified EEA markets.

The Commission said these commitments fully resolve its competition concerns by ensuring the merged company's films will not be distributed jointly with those of Universal or Disney. Following a market test, regulators concluded the transaction would no longer significantly restrict competition.

Earlier, Qazinform News Agency reported that a U.S. federal judge temporarily blocked Paramount Skydance Corporation's proposed $110 billion acquisition of Warner Bros. Discovery.