Federal regulators will impose several conditions meant to protect online video services as they back Charter's bid to buy Time Warner Cable and create the country's second-largest home Internet provider.
The Justice Department approved the deal Monday, subject to court approval on the conditions, while Federal Communications Commission Chairman Tom Wheeler circulated a draft order to OK the combination. That leaves California's utility regulator, whose approval is expected in May.
Buying Time Warner Cable and Bright House Networks will turn Charter Communications, a mid-size cable company, into the country's No. 2 home Internet provider, after Comcast. The new Charter will be No. 3 in video, trailing Comcast and AT&T, which bought DirecTV last year.
To preserve competition from online services, the Justice Department is forbidding Charter from restricting what media companies make available online. The government says Time Warner has been aggressive at imposing such restrictions in contracts, and without a ban, a bigger company could make online services less competitive.
Meanwhile, the FCC is expected to prohibit Charter from charging consumers more for using more data, the way wireless and some home services are priced. Video is one of the biggest consumers of data, and caps or usage-based prices could make consumers reluctant to watch online video.