Paramount Skydance’s proposed acquisition of Warner Bros. Discovery has hit a roadblock after a judge temporarily halted the deal in response to a lawsuit filed by a coalition of 12 state attorneys general who argue the merger would harm competition.

U.S. District Judge Araceli Martínez-Olguín issued a 14-day pause Monday after hearing arguments from both sides last week. The coalition, led by California Attorney General Rob Bonta, could seek another pause after the 14 days, further delaying the merger.

The states’ lawsuit alleges that the deal would harm movie theaters, basic cable distributors and the public. They argue that if the two companies are allowed to merge, it would lessen competition in three areas: theatrical distribution of wide-release films, “high-grossing” theatrical distribution, and basic cable licenses.

“This is a critical first victory in our case to ensure this mega-merger never sees the light of day,” Attorney General Bonta said in a statement. “History tells the story of what happens when a few people have great power over the markets that are fundamental to American lives: fewer opportunities for more people, worse products and services for all people. With our lawsuit, we are fighting for a free and fair market and a thriving film and television industry that serves both creatives and audiences. We have a full tank of gas, the law on our side, and we look forward to continuing to make our case.”

The deal would combine two notable film studios, as well as streaming platforms Paramount+ and HBO Max. It would also create one of the largest television network portfolios, bringing together Paramount’s CBS and MTV with WBD’s CNN and HBO.

“We are confident that the evidence will demonstrate that state AGs’ antitrust arguments are baseless, as their alleged markets and claims of anticompetitive effects have no basis in modern market realities,” a Paramount spokesperson said in a statement to TechCrunch. “This merger is legal, pro-competitive and will benefit consumers, creators, workers and the entertainment industry. We will continue to vigorously defend the transaction and look forward to hearings on the merits of the state AG’s action.”

Paramount CEO David Ellison had said in May that the transaction was on track to close in September. The legal hurdle has the potential to derail Paramount’s efforts to transform itself into a major competitor to companies like Netflix.

The proposed acquisition has received scrutiny from filmmakers, actors and industry professionals who argued that the deal would reduce competition and further consolidate the American media industry.

WBD did not immediately respond to TechCrunch’s requests for comment.