AOL, Time Warner Argue With FTC Over Settlement

America Online Inc. and Time Warner Inc.
are still trying to reach a settlement with the Federal
Trade Commission (FTC) in advance of a planned meeting on their
proposed $124 billion merger reportedly scheduled for Thursday
afternoon.

The Wall Street Journal reported that the failure by the parties to
reach a settlement may delay a vote on the deal, and that, in the
meantime, other FTC officials are preparing to go to court to block
the merger should those settlement talks fail.

According to the WSJ, the commission is expected to consider the
merger in a closed session Thursday afternoon, but if negotiations
continue, a vote on the deal could be postponed to give the sides
more time to complete a settlement.

The WSJ reported that an agreement had previously been reached to
have Time Warner open its high-speed cable lines to Internet
competitors before AOL offers service over those same lines, denying
AOL a first-to-market advantage in cities served by Time Warner cable
systems, and with the companies signing at least two more competing
Internet services within 90 days of AOL starting service in those
cities. However, one of the latest sticking points is reportedly that
the FTC is now also requiring the firms sign a contract with at least
one of these Internet competitors even before closing the merger.