Investing.com -- Britain's Competition and Markets Authority has launched an investigation into Paramount Skydance Corp.'s $110 billion acquisition of Warner Bros. Discovery Inc.

The CMA set an initial deadline of August 7 to rule on the transaction, which would combine two Hollywood studios responsible for films including Casablanca, Harry Potter and Mission: Impossible. The deal also involves news networks CNN and CBS, streaming service HBO and multiple cable networks.

"The film and TV industries contribute billions to our economy, so it's important we assess whether deals between studios may harm competition," the CMA said.

The initial investigation gives the agency 40 days to determine if the merger raises competition concerns. Companies can then offer remedies to address those concerns. If the remedies prove insufficient, an in-depth probe lasting 24 weeks will begin.

The London-based agency has been facing pressure from public-interest groups, unions and film-industry organizations to scrutinize the takeover closely.

The European Union's antitrust authority has set a separate July 7 deadline to rule on the transaction. Paramount is willing to sell some children's TV assets if needed to secure approval in the 27-nation bloc, Bloomberg reported last week.

Paramount has also submitted proposed terms to resolve an antitrust investigation by California and other states into the transaction, Bloomberg reported.