By Joey Gardiner, 24 August 2000 12:58
NEWS AOL and Time Warner may face a hearing in front of the European Commission to respond to anti-trust concerns over their proposed merger. An EC spokesman confirmed both AOL and Time Warner have been notified of objections to the merger. Concerns are thought to centre on the potential monopoly the union would afford AOL/Time Warner in the market for online music and their stronghold on broadband internet connections in Europe. AOL and Time Warner have been given two weeks to respond and, according to a source close to the situation, the hearing in front of Commission officials could be scheduled as early as 6 September. Under EU rules, the Commission must reach a decision on the merger before the end of October. Simon Stokes, competition law partner at law firm Tarlo Lyons, doubts the EC would try to halt the merger. He said: "AOL/Time Warner doesn't want to face censure, which could include fines or - at worst - the arresting of the merger in Europe. It is likely to make various undertakings, commitments or divestitures to get the merger through." Time Warner is also under investigation by the EC for its proposed merger with music industry giant EMI.
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