FTC approves AOL, Time Warner merger
Published: 14 Dec 2000 17:51 GMT
The Federal Trade Commission on Thursday voted unanimously to approve the $109bn merger between America Online and Time Warner
A press conference is scheduled for 1.30pm EST. In a 5-0 decision, the vote means AOL and Time Warner have cleared the first of two regulatory hurdles on the way to completing their merger.
Last night, AOL formally offered the FTC additional terms on access and other issues in a bid to win approval, according to reports.
The companies had expected to close the merger in the fall, but the FTC continued to delay its vote until AOL and Time Warner gave more firm assurances that they would open their cable network to rival Internet service providers. Last month, the companies inked a deal with ISP EarthLink, largely viewed as a concession to the FTC for approval.
Now it's up to the Federal Communications Commission to vote on the merger. The roles between the two commissions are different, and their reviews are focusing on separate issues surrounding the merger. The FTC put open access front and center in its review. The FCC will evaluate AOL's dominance in instant messaging among other issues, sources said.
The FTC generally reviews issues that involve a direct commercial effect on competition under antitrust law. The FCC also examines competition in a merger review, but under the broader mandate of whether the merger serves the public interest.
The FCC traditionally votes after the FTC or the Department of Justice's review of a corporate merger, although that is not due to any statutory obligation. The FCC could vote at any time after the merger, but it is unlikely the commission will vote immediately, according to people close to the FCC.
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