ASHINGTON, Sept. 11 — Federal antitrust regulators approved today the establishment of an online venture that would allow five major automakers — including the top three in America — to buy supplies through a single Internet portal.
The Federal Trade Commission approved the formation of Covisint, the business-to-business Web site, which proponents said would streamline the annual purchase of as much as $300 billion in parts for the Ford Motor Company, the General Motors Corporation and DaimlerChrysler A.G.
On the proposed site, automakers are expected to list parts they seek from suppliers, who will then offer bids to secure a contract. The procedure is commonly referred to as a reverse auction.
In addition, automotive suppliers, who spend $500 billion a year, could turn to the site for everything from engine parts to office supplies, the proponents said.
The Nissan Motor Company of Japan and Renault of France are also parties to the exchange, as are two information technology companies, Commerce One Inc. and the Oracle Corporation. The Toyota Motor Corporation is negotiating to join the joint venture, Covisint officials said.
American automakers praised the F.T.C.'s long-awaited ruling in favor of Covisint, which they said would enhance efficiency and yield significant savings by streamlining the procurement process.
Brian Kelley, Ford's head of electronic commerce, said the exchange would ease online price quoting and collaboration on product designs, which in turn will "drive productivity throughout our supply network."
The F.T.C. decision ended a six-month investigation in which regulators explored concerns that the exchange might enable the big automakers to collude to force down the prices of suppliers.
The commission — which voted 4 to 0 in favor of the exchange — warned that it would remain vigilant against such anticompetitive maneuvers and said that it "reserved the right to take such further action as the public interest may require." One commissioner, Thomas B. Leary, did not take part in the vote.
"Because it is not yet operational, and because its founders represent such a large share of the automobile market, the commission cannot say that implementation of the Covisint venture will not cause competitive concerns," the F.T.C. said in a statement.
Thomas T. Stallkamp, an expert on automobile industry purchasing, said that today's ruling was a "good step forward" for the formation of the site. But he added, "There is still a long road to getting Covisint up and running."
Mr. Stallkamp, a former president of Chrysler, said the developers of Covisint would have to demonstrate their "true neutrality," so the exchange is accepted by suppliers and not seen as weighted in favor of the major purchasers.
He urged the developers to grant suppliers some ownership in the Internet site. Automakers have so far ruled that out, trying to draw dozens of suppliers into the network by offering them the chance to link their sites to the portal's vast revenue pool.
By sharing equity, the automakers may allay concerns that they might use Covisint "as a cost-reduction tool against suppliers, rather than a communications tool for the suppliers," said Mr. Stallkamp, who now is chief executive of MSX International, a Michigan company that helps businesses hire engineers.
Covisint officials have yet to name a chief executive, define who will own the portal's data — a potentially valuable trove of purchasing information — or devise safeguards to protect suppliers' proprietary information.
The exchange also must still receive approval from Germany's antitrust regulatory agency, which is expected soon. Alice Miles, Covisint's interim co-chief executive, predicted the electronic marketplace will be operational within a month of that final approval.
In remarks to reporters, Ms. Miles, a Ford employee, said Covisint might pursue an initial public offering next year after at least two quarters of operation.
"Covisint is poised to create a leading global e-business trading exchange," Ms. Miles said. "The completion of the F.T.C. review represents a significant milestone in our efforts to establish a transformational business-to-business entity."
Covisint is the first business-to- business venture to be reviewed by the F.T.C. Such Internet sites are seen as a boon to global trade with implications that reach to all sorts of industries.
Business-to-business electronic marketplaces "offer great promise as means through which significant cost savings can be achieved, business process can be more efficiently organized and competition may be enhanced," said Robert Pitofsky, the F.T.C. chairman.
He cautioned, however, that his agency would scrutinize additional ventures to ensure that they "are organized and implemented in ways that maintain competition."
