Article Abstract:
America Online's acqusition of Time Warner may be blessed by stock holders, but the Federal Communications Commission and the Federal Trade Commission will be poring over antitrust issues. AOL could possible lose DirecTV, or both companies might be forced to open access for rival Internet companies. Even Senator Orrin Hatch is concerned about the composite of power after Time Warner punished ABC by turning off services to 3.5 million viewers. And some shareholders may not vote yes since AOL's stock has fallen 22% since the merger was announced.
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Article Abstract:
Although the Federal Communications Commission may want America Online Inc. to open up its instant messaging system to competitors before it merges with Time Warner Inc., AOL's dominance of the market is such that any order of the sort may be too late. AOL has 65.5 million users signed up for its instant messanging service, compared to its next competitor, Microsoft's MSN Messenger, which has 20 million users registered.
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Article Abstract:
Microsoft has told the Federal Trade Commission that Time Warner won't negotiate with Microsoft any more because it would rather negotiate with a weaker competitor, EarthLink, with which Time Warner recently made a deal to open its high-speed cable lines, as a way to fulfill the FTC's requirement that it open up its lines. The FTC pays attention to Microsoft's complaints because the software firm is viewed as the most significant competitor to AOL in the long run.
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