EU Extends Probe Of AOL
The European Commission is extending its probe into the proposed AOL/Time Warner Inc. merger.
The EU cited concerns about Internet music distribution, dial-up access, and paid-for content. AOL’s promotion, distribution, and sales agreement with the German media group Bertelsmann complicates the issue for the EU.
The Commission will also look into whether AOL could use its dominant position in the United States and its proprietary content to achieve dominance in such other markets as films, television, and news.
The decision gives the EU until mid-October to decide whether to block or approve the $127 billion merger.
In a separate development, AOL announced it would launch AOLTV, in July, making e-mail, instant messaging and Web access available on home television. The new interactive television service will pit AOL against Microsoft’s Web TV.
The set-top boxes, available from AOL and in Circuit City, will cost $250, while monthly access will be $14.95 for AOL members and $24.95 for nonmembers.
In addition, AOL took a $200 million stake TiVo Inc., with sells a VCR-like set that uses a computer hard drive to record TV programs. This would let AOLTV subscribers create their own TV schedules and programs.
