A US federal judge has temporarily blocked the proposed $110bn (£85bn) merger between media giants Paramount Skydance and Warner Bros Discovery.

The decision follows a lawsuit filed by a coalition of 12 US states, including California and New York, seeking to stop the deal over fears it would stifle competition and raise consumer prices.

Prosecutors representing the states said the merger of two major studios would cause “substantial harm to movie theaters, basic cable distributors and, ultimately, audiences across the country.”

In response, the media giants argued that the states had misread the market and that the merger would improve streaming efficiency.

U.S. District Judge Araceli Martínez-Olguín issued the temporary restraining order on Monday following legal arguments heard last week.

Under the 14-day court order, neither company can finalize the agreement or begin merging the companies.

In her ruling, the judge noted that the state coalition raised “serious questions” about the impact of the agreement on film distribution.

He warned that allowing the merger to proceed now would make it “extraordinarily difficult to crack the egg” if the court later decided to block it entirely.

Judge Martínez-Olguín also rejected the companies’ arguments, noting that “the public’s vital interest in the enforcement of antitrust laws” outweighed any temporary delay in the merger.

He said Paramount and Warner Bros. “will continue to operate as separate, viable companies competing in the marketplace” while legal proceedings continue.