California Budget Adds Funding for Antitrust Enforcement

The revised California budget provides new funding for antitrust litigation as state officials examine a proposed merger between Paramount and Warner Bros Discovery. The May Revision includes $14.3 million in Special Funds for antitrust efforts in 2026-27, declining to $10.5 million in 2029-30.

The budget document states this addresses an anticipated increase in workload following the federal government's recent retreat from enforcing antitrust laws. "In response to the federal government’s recent retreat from enforcing antitrust laws, the May Revision includes $14.3 million Special Funds in 2026-27, declining to $10.5 million in 2029-30, to address an anticipated increase in antitrust workload," the budget summary released Thursday reads.

The document adds that the lack of federal oversight leaves California individuals and businesses vulnerable to predatory business practices that threaten affordability and consumer rights. California has dedicated $8 million annually since the 2023 Budget Act to prosecute antitrust violations in the gas and oil, technology, and agricultural sectors.

State officials maintain an active investigation into the $111 billion acquisition that would combine Paramount and Warner Bros Discovery. No decision has been reached on the probe's outcome. Officials previously helped lead efforts to label Live Nation a monopoly and to halt the Nexstar-Tegna merger.

Funding for the antitrust work draws from both the new budget allocation and the state's Antitrust Accounts, which receive portions of past settlements and awards. A Paramount Skydance chief legal officer wrote to state officials last week to argue the merger's benefits.

The letter stated that a combined Paramount-Warner Bros Discovery would need to capture audiences’ attention in fresh ways, including broadening theatrical distribution to create momentum behind films before they reach streaming services.

The revised budget estimates state revenues are $16.5 billion higher than anticipated a few months earlier. Officials described the overall plan as fiscally disciplined and balanced. The additional antitrust resources form part of the final budget submitted by the current governor before leaving office.

State officials have not indicated a timeline for concluding the Paramount-Warner Bros Discovery review. Officials have noted that major corporate consolidations can lead to increased prices, lower wages, reduced competition, limits in choice and lower quality.

The budget document positions California as continuing its leadership role in antitrust enforcement in the absence of stronger federal action.