Regulators Reviewing Worldcom, Mci Deal

Federal regulators are taking a hard look at whether WorldCom’s proposed takeover of MCI Communications would dampen competition and drive up Internet and long-distance prices.

The $37 billion merger - the biggest in U.S. history - is now being reviewed by the Justice Department, which is collecting detailed information from the companies and their rivals.

A combined MCI-WorldCom would control at least 50 percent of Internet traffic in the United States and 25 percent of the nation’s long-distance business, analysts say.

GTE Corp. and Sprint Corp., which have raised concerns about the merger, have received civil subpoenas from Justice.

Attorneys for GTE and Sprint said Justice is seeking detailed information about the proposed merger’s impact on competition and pricing in the Internet and long-distance businesses.