States Increase Merger Scrutiny, Blocking Major Corporate Deals
Multiple states and the FTC are blocking major corporate mergers over antitrust concerns.
Why it matters: Heightened state-level antitrust enforcement adds complexity for legal teams managing mergers and acquisitions, requiring strategies that address both federal and growing state challenges.
- On Oct. 20, 2026, the FTC and 12 states sued to block Platinum Equity’s PlayPower acquisition of BCI Burke.
- Virginia’s governor opposed the $67 billion NextEra-Dominion merger without stronger consumer protections on Oct. 19, 2026.
- In July 2026, 12 states won a court order halting the $110 billion Warner Bros.-Paramount merger.
- In March 2026, 8 states challenged Nexstar’s $6.2 billion acquisition of Tegna over competition concerns.
State attorneys general are leading an increasing number of challenges to high-profile corporate mergers, often stepping in when federal agencies appear less aggressive. This trend represents a significant shift toward stronger state antitrust enforcement.
On October 20, 2026, the Federal Trade Commission and 12 state attorneys general filed a lawsuit to block Platinum Equity’s portfolio company PlayPower from acquiring BCI Burke. They argued the deal would reduce competition in the playground equipment market. This coordinated multi-state action supplements federal scrutiny and highlights growing state collaboration. Details here.
The day before, Virginia Governor Abigail Spanberger opposed the $67 billion merger between NextEra Energy and Dominion Energy unless the companies agreed to consumer protections, including a six-year freeze on electricity rates. This move shows states pushing for enforceable consumer safeguards in large mergers. More information.
In July 2026, a federal judge granted a temporary restraining order against the $110 billion Warner Bros. Discovery and Paramount Skydance merger after 12 state attorneys general argued it would harm competition, theaters, and cable distributors nationwide. Colorado Attorney General Phil Weiser emphasized the deal's threat to consumers and market fairness. Announcement.
Earlier in March 2026, eight states challenged Nexstar Media Group’s $6.2 billion acquisition of Tegna Inc., citing concerns the combined entity would dominate U.S. broadcast markets and potentially increase consumer cable bills. Details here.
States have also targeted technology sector deals. In October 2025, Oregon Attorney General Dan Rayfield led a coalition seeking federal court oversight of Hewlett Packard Enterprise’s $14 billion acquisition of Juniper Networks, citing risks to competition and urging transparency. Read more.
Legal experts note that states are asserting more power in antitrust enforcement, filling gaps when federal agencies do not act decisively. According to Brookings Institution analysts, this trend complicates merger approvals for corporate counsel, who must navigate multiple jurisdictions' demands.
Lawyers advising on mergers need to integrate state-level enforcement risk into compliance strategies alongside federal reviews. This evolving landscape requires more robust due diligence, enhanced negotiation of consumer protections, and vigilant monitoring of state attorney general activities.
By the numbers:
- 4 major merger challenges — coordinated state and FTC actions in 2026
- $110 billion — Warner Bros.-Paramount merger halted in July 2026
- $67 billion — NextEra-Dominion deal opposed by Virginia governor in Oct 2026
Yes, but: While state actions strengthen antitrust scrutiny, critics warn that overlapping state and federal enforcement may create unpredictable outcomes and increase legal uncertainty for corporations.
What's next: Several of these mergers remain under litigation, with key court decisions expected in early 2027; ongoing legislative discussions may further expand state attorneys general authority over antitrust enforcement.