A federal judge heard arguments from a coalition of states seeking to block the Paramount-Warner Bros.Discovery merger, citing antitrust concerns over market concentration in theatrical and cable industries.The states argue the merged entity would dominate up to 30% of top-grossing films and control 50 of 189 basic cable channels, stifling competition.

Paramount's attorney, Jeffrey Kessler, countered that new entrants like Apple and Amazon are already disrupting the industry, citing recent hits such as 'F1' and 'Project Hail Mary.' The judge expressed openness to a temporary restraining order, emphasizing the difficulty of reversing the merger if ruled unlawful.Key legal battles center on market definitions, with Paramount challenging the states' metrics for anticompetitive behavior.A $7 million daily penalty looms if the deal proceeds past September 30, adding urgency to the case.The hearing highlighted tensions between legacy studios and emerging tech firms in shaping media markets.