Anticipating competitive concerns, the partners pledged Monday that other Internet service providers will have open access to these cable systems, but how the new company will keep that pledge is unanswered, industry observers and regulatory experts said today. Of primary concern is the impact on vertical competition, an area of antitrust law that has gotten increasingly close attention. Vertical mergers combine companies that do not compete directly with each other, but whose businesses are complimentary, potentially making it harder for rivals to compete. The deal could also be complicated by First Amendment concerns if it hurts the ability of rivals from reaching readers and viewers over the Internet.
Consumer choice is a goal of antitrust.
When the options we're talking about relate to information, then in a way it's a proxy for the First Amendment because diversity of information is a constitutional value. In addition to the scrutiny of federal regulators, the deal could also raise concerns at the state level. This could be significant in cities where Time Warner is the dominant cable provider, he said. The ball is in the ISPs' court' Lindsey and others say that although the uniqueness and size of the deal will generate an extensive regulatory review and require potential concessions, it is likely to pass. That's because AOL and Time Warner have studied the antitrust angles and have said they are committed to providing equal access to other Internet service providers such as Earthlink or Mindspring.