LONDON (Brand Republic) – AOL and Time Warner are expected to be forced to agree to a series of tough conditions imposed by US and European regulators if their proposed $130bn merger is to get the go-ahead.
The US Federal Trade Commission is concerned that Time Warner’s control of 20% of US high-speed cable networks would give it an unfair advantage. The regulator is expected to demand written confirmation that the companies will agree to open access.
The commission is also considering forcing the merged company to offer its content at competitive prices to rivals.
The European Commission is expected to insist that AOL offers its proprietary software for downloading music and videos from the internet to competitors to ward off EC fears that the company would dominate the online delivery of music and other forms of content in Europe.
If AOL agrees to this condition, the regulator believes European competitors would be able to compete more effectively against the behemoth.
The EC has until mid-October to reach a decision. The hearing in the US could take even longer -– the case could go to court if no agreement is reached.
AOL and Time Warner have said they want to complete the merger by the end of the year.