Online Exchange Approved Despite Antitrust Concern

September 20, 2000 10:16 AM, EDT

The automobile industry will be allowed to launch an online business-to-business exchange, but federal regulators said they will be watching closely to see if the exchange runs afoul of antitrust rules.

The Federal Trade Commission finding on the Covisint case did not change the view of trucking analysts who insist that the industry is too fragmented for any one exchange to corner the trucking parts or services market.

Covisint received approval from the FTC to start operating its business, which will allow large automakers and their vendors to buy and sell things online. But the venture did not convince the commission that it will not cause competitive concerns.

Also, the company will not begin international operations until it gets approval from the German government’s antitrust regulatory agency.

For the full story, see the Sept. 18 print edition of Transport Topics. Subscribe today.