Feeds

AOL/Time Warner agree to next set of concessions

They want this merger real bad. The FTC knows it

  • alert
  • submit to reddit

Security for virtualized datacentres

AOL and Time Warner have narrowly avoided an FTC court case by agreeing to a new set of concessions before their $150 billion merger is allowed to go through. The game of bluff this time revolves around competition for Internet access.

The FTC agreed to delay any action for "no more than three weeks" after the two companies said they would offer "new proposals to address competitive issues". Does anyone else find this high-profile cat and mouse game a little tedious? Anyway, the issue this time is a guarantee of competition in the Internet access market and/or a delay on when AOL can use Time Warner's cable infrastructure.

With the two companies merged, it would be a fairly simple manoeuvre to edge everyone else out of the market. AOL has therefore agreed to give people using cable TV a choice of three ISPs. However, the FTC still reckons AOL will get an unfair headstart because it will be able to offer high-speed access from day one. It's right too.

Previously AOL said it wouldn't launch its service until at least one other company has set up against it. Fortunately, the FTC would have none of it.

It looks as though the FTC is pushing for AOL to agree and sign contracts with alternative suppliers before the merger is given the green light. AOL and Time Warner will eventually agree as long as the FTC stands its ground.

The City was a little upset on the news and both companies' shares slipped: AOL by 6.9 per cent and Time Warner by 5.5 per cent. ®

Related Stories

AOL, Time Warner confident of merger success
EC blesses AOL-Time Warner wedding
FTC starts gearing up for AOL/Time Warner battle
FTC mutes AOL/Time Warner wedding bells

New hybrid storage solutions

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.