The lawsuit is ‌a serious threat to Paramount CEO David Ellison’s bid to transform his company into a major competitor to Netflix and Disney.

“With this lawsuit, California and our sister states are fighting for free ​and fair markets, not rigged markets. America has no kings in government or ​our economy,” Bonta said in a statement.

If allowed to move forward ⁠with the deal, Paramount would control 27% of the distribution market for films ​that appear on screens across America, 30% of blockbuster film distribution and 27% of ​the market for basic cable channels, the states said.

It will likely take months for a ruling on the states’ claims, causing a delay that could rack up hundreds of millions of dollars in ​costs for Paramount.

The deal has led to an outcry from actors, writers and ​others fearing it will hurt jobs. Theatre owners also opposed the deal, worrying that the combination of ‌the Warner ⁠Bros movie studio with Paramount Pictures would result in fewer films.

Paramount has said the deal will allow it to produce more, not less, after it cuts $6 billion in redundant infrastructure, marketing and corporate jobs. Ellison has vowed that the combined film studios ​would release 30 ​movies a year.

The US ⁠Department of Justice has cleared the deal, saying it poses no competition problems.

Paramount CEO David Ellison’s father, billionaire Oracle co-founder Larry ​Ellison, has cultivated ties with President Donald Trump, and the ​company has ⁠hired former Trump officials.

Paramount has committed to pay around $650 million in fees to Warner Bros. Discovery shareholders each quarter if the deal does not close before October. The company ⁠has said ​delays could force it to renegotiate the deal’s ​financing, cause uncertainty for its stock price, or even scuttle the transaction altogether.