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25/08/2000

AOL TIME WARNER MERGER COULD CREATE PROBLEMS

IN January, America Online (AOL) and media giants Time Warner announced their intention to merge, but rival company Disney is concerned that the merger could create problems.
A spokesman for Disney stated that they are worried that the new mega company will give advantages on its cable television and internet services, to companies that were partners of Time Warner and AOL, thus putting rivals such as ‘Disney’ at a disadvantage, even though they use the same cable channels. Disney has asked to see documents filed by Time Warner and AOL, with the Federal Communications Commission (FCC) in America.
Disney wants to see these documents to verify whether there are domination possibilities open to the merged company, and our demanding that the merger should be blocked, or a number of restrictions put in place.
AOL and Time Warner has made a public promise to the FCC that the merged company would not discriminate against content providers.
Disney has recommended to the FCC that if Time Warner and AOL are to merge, they should separate their distribution of content from the programming and content development sides of the business.
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