New Delhi, July 21 -- A US federal judge has temporarily blocked Paramount Global and Warner Bros. Discovery from completing their proposed $81 billion merger, handing a legal victory to a coalition of 12 states that argue the deal would harm competition in the entertainment industry.

The temporary order gives the court time to consider whether the merger should be blocked altogether while legal proceedings continue.

Here's what the dispute is about.

US District Judge Araceli Martinez-Olguin on Monday (July 20) granted a temporary restraining order (TRO) preventing Paramount and Warner Bros. Discovery from completing the transaction for at least 14 days.

The order came after 12 US states led by California asked the court to stop the c...