Warner-PolyGram Antitrust Settlement Announced
WASHINGTON (AP) _ Warner Communications and PolyGram Records have reached a consent agreement with the Federal Trade Commission, settling charges that their proposed merger could lessen competition in the recorded music industry.
The merger, proposed in 1984, was blocked by a federal court order at the request of the commission. The merger plan was subsequently canceled.
The FTC said the companies have agreed to seek prior commission approval before acquiring any new interest in major record companies and to notify the commission before reaching any distribution agreements with other firms.
Under the agreement, the FTC said, Warner will seek approval in the event it plans to acquire any interest in PolyGram, CBS Inc., Capitol Records, RCA Corp. or MCA Corp. PolyGram would have to obtain approval if it sought an interest in Warner, CBS or RCA.