Washington Post: U.S. preparing to block AOL-Time Warner deal

WASHINGTON (Reuters) -- U.S. government officials are preparing to block America Online Inc.'s merger with Time Warner Inc. if an agreement over Internet access is not hammered out within two weeks, the Washington Post reported Saturday.

Unnamed sources said negotiators for both sides have been unable to reach a deal over how the merged company would ensure that rival Internet service providers would have access to its high-speed cable network.

Attorneys for the Federal Trade Commission must rule by October 27 whether to approve the merger. Sources said both sides remain far apart in their positions and a deal is unlikely by that time period.

While the companies could ask for a postponement, FTC attorneys are preparing litigation to block the merger, the sources said.

A spokeswoman for AOL told the Post that the merger was on track to close in the fall. The FTC declined to comment.

The world's largest Internet services provider's efforts to buy the cable and publishing giant Time Warner won European approval Wednesday only after AOL offered to sever all structural links with German media group Bertelsmann AG. That concession eliminated the risk of dominance in the emerging market for online delivery of music over the Internet and software-based music players.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

AOL, Time-Warner urge FCC to leave AT&T out of debate
October 12, 2000
EC Gives AOL-Time Warner merger go-ahead
(IDG.net)
Sony and Microsoft join forces to pump up the online jam
(IDG.net)
Technology - EU ponders Time Warner-EMI merger
September 21, 2000
Is Time Warner afraid of mice?
(The Industry Standard)
AOL & Time-Warner: Anatomy of a mega-marriage
(The Industry Standard)
FCC head blasts broadcasters
(Computerworld)
Sotheby's, Amazon to shut down joint site
(Computerworld)
FCC approves BellSouth, SBC wireless joint venture
(IDG.net)
FCC moves off cable sidelines
(InfoWorld)

Federal Communications Commission
Time Warner, Inc.
AOL.com
The EMI Group

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.