The US Federal Trade Commission has given the seal of approval to Covisint, a huge online trading exchange set up by the world's three biggest car manufacturers, Ford, General Motors and DaimlerChrysler.
The US regulatory body which has been investigating antitrust concerns raised by the alliance between the three car makers gave its unconditional approval to the business-to-business (B2B) exchange after months of deliberation, and said it would not attach any conditions to the venture.
Until now, Covisint, which was formed in February, has been unable to trade. However, following the USdecision, Alice Miles, interim CEO of the venture, said it would begin transacting within 30 days of receiving approval from the Bundeskartellamt, the German regulatory body, which is expected to deliver its verdict some time in the fourth quarter of 2000.
Industry watchers said the decision was likely to give the green light to other B2B exchanges, many of which were keeping a close watch on the Covisint case as an indication of regulatory authorities' attitude towards electronic-marketplaces.