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See also: June 27, 2000 The Honorable Billy Tauzin Dear Congressmen Tauzin and Markey: We understand that H.R. 4019, the Telecommunications Merger Review Act of 2000, is scheduled for mark-up at your Subcommittee today. We applaud your efforts to move this legislation at this time, because we strongly believe that there is an urgent need to impose time limits on action by the FCC when it considers mergers. This need is highlighted by a number of pending global mergers requiring European Union ("EU") approval-WorldCom/Sprint, AOL/Time Warner, and Vivendi/Seagrams, to cite just a few. Under the EU's merger review procedures, the EU must complete its review within five months, a far shorter time-frame than is usually followed by the FCC. An FCC time limits bill will go a long way toward harmonizing the American and European merger review processes, therefore substantially reducing the likelihood of inconsistent results, at different times, by the two authorities. Failure to expedite the FCC merger review process, furthermore, will turn established merger tradition on its head by allowing the European authorities to pass the first judgment on mergers among American companies. To be sure, some of the provisions of H.R. 4019 are not likely to be endorsed
by a majority of the Senate. Specifically, we do not believe that there is
sufficient support to strip the FCC of any of its substantive merger review
authority, or to impose a time period of 90 days for agency action on all but
the smallest mergers. Nonetheless, we believe that it is important that your
Subcommittee move this legislation at the present time so that we may, in both
the House and Senate, continue toward the goal of expediting FCC review of
mergers. As you know, we have introduced similar legislation (S. 467, the
Expeditious Action in Telecommunications Mergers Act), which passed out of the
Senate Judiciary Committee last year, and has overwhelming support in the
Senate. We look forward to working with you so that we can, during this
Congress, enact reasonable and effective reforms of the FCC's presently troubled
merger review process. Sincerely,
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