The Justice Department of the United States has given an antitrust approval to the proposed acquisition by Charter Communication Inc of Time Warner Cable Inc and Bright House networks.
This buy out will create the second-biggest U.S. broadband provider and third-biggest video provider in the country.
But the approval of the U.S. Justice Department carried with it some conditions that are included as a protection for the merger's competition, considering that the pay television industry is faced with business contraction due to the arrival of new over-the-web competition such as Hulu and Netflix.
Additionally, the Federal Communications Commission must also approve the acquisition. The chairman of the agency also said that he will put conditions on the buyout designed to promote broadband competition.
The restrictions placed by U.S. regulators on the merger show how the government is increasingly flexing its powers to promote its policy goals which are not currently covered by the industry.
Both the Justice Department and the FCC imposed restrictions to protect internet companies that stream content and those which provide cheaper broadband services to the poor.
"The cumulative impact of these conditions will be to provide additional protection for new forms of video programming services offered over the Internet," said Tom Wheeler, chairman of the F.C.C., in a statement.
He added that they would assign an independent monitor to ensure the merger will comply with their conditions.
The Justice Department also said that Charter Communications Inc has agreed not to tell its content providers that they are not allowed to sell shows online.
"Continued growth of OVDs (online video) promises to deliver more competitive choices and a greater ability for consumers to customize their consumption of video content to their individual viewing preferences and budgets," said the Justice Department in a court filing. "The emergence of OVDs threatens to upend the competitive landscape," the court filing added.
