The European Commission has approved Paramount Skydance Corporation’s proposed acquisition of Warner Bros. Discovery after the company agreed to a series of commitments designed to address competition concerns across the European Economic Area (EEA), including in Portugal.

According to the Commission, the acquisition was cleared under the EU Merger Regulation after Paramount agreed to measures intended to prevent reduced competition in the European film distribution market, Executive Digest reports.

Competition concerns addressed

The Commission’s investigation focused on Paramount’s existing partnership with Universal through United International Pictures (UIP), which distributes films in several EEA countries. Regulators concluded that combining Warner Bros. Discovery’s film catalogue with that arrangement could reduce competition and result in less favourable distribution terms for cinema operators, ultimately affecting consumers.

To resolve those concerns, Paramount has committed to ending its participation in UIP within the EEA within 13 months of completing the acquisition.

The Commission said the commitments fully address the competition issues identified during its review and ensure that the merged company’s films will continue to be distributed independently from those of Universal and Disney.

Restrictions to apply for 10 years

As part of the agreement, Paramount has also committed not to enter into any direct or indirect arrangement with Universal to jointly distribute films within the EEA for a period of 10 years.

The commitments also prevent Paramount from transferring the distribution of Warner films to a distributor already responsible for distributing Universal or Disney titles in the countries covered by the agreement.

Likewise, where Paramount and Universal currently use different distributors, Paramount will not be permitted to move distribution of its own films to Warner’s distributor if that company also distributes films for Universal or Disney.

The measures apply to Portugal as well as Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Iceland, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia and Sweden.

Following a market test, the Commission concluded that the transaction, as modified by the agreed commitments, no longer raises competition concerns. Compliance with the commitments will be monitored by an independent trustee under the Commission’s supervision.

US legal challenge continues

While the acquisition has received conditional approval in the European Union, it continues to face legal challenges in the United States.

Earlier this week, a federal judge in California temporarily blocked Paramount from completing the merger after 12 states filed a lawsuit arguing the transaction could reduce competition.

The temporary court order prevents the deal from being finalised for at least 14 days. A hearing has been scheduled for 3 August, when the court will consider whether to extend the block while the case proceeds.

Paramount and Warner Bros. Discovery are both major producers and distributors of films, television series and other audiovisual content. The proposed acquisition was formally notified to the European Commission on 2 June 2026.