The European Commission has cleared the merger between internet service provider AOL and global media giant Time Warner, announced in January this year (see AOL And Time Warner Confirm Mega-Merger). The deal, which will create a company worth £219bn, was passed on the condition that AOL severs all structural links with the German media company Bertelsmann AG.
Such a condition was placed to prevent a reduction of competition in the European online music market. “The proposed undertakings will prevent AOL from having access to Europe’s leading source of music publishing rights thereby eliminating the risk of dominance in the emerging markets for online delivery of music over the internet and software music players,” the EU statement said.
The merger will create the first internet vertically-integrated content provider, delivering Time Warner content through AOL’s internet distribution network. It has yet to be approved by the Federal Trade Commission and other regulatory bodies, which may demand further concessions.
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