EC allows formation of French Internet consortium

NEWS The EC has cleared the way for the formation of a French Internet consortium. America Online (AOL), Bertelsmann, Canal+ and Cegetel will provide and develop dial-up Internet access for residential customers in France. The service, called AOL/CIS France, will kick off with 285,000 subscribers, drawn from the subscriber bases of AOL France and Compuserve France. AOL's two existing agreements with Bertelsmann will continue to operate under the umbrella of the new alliance. However, the EC said Cegetel will have to wind down and terminate its existing Internet service provider businesses. A statement from the Commission said: "Given the financial strength of France Telecom and the economies of scale it enjoys, and the presence of other smaller competitors, the market share [of AOL and Cegetel] will not create or strengthen a dominant position."