[Random-bits] BEUC press release on AOL/Time Warner/EMI mergers

[James Love]

This is the press release issued yesterday by BEUC, the Bureau of
European des Unions de Consommateurs.  This is the umbrella organization
that represents 29 independent national consumer organizations from 20
European countries.    Jamie

-----------------
FMI:	Irene Donadio <irene.donadio@beuc.org>
	"Murray, Jim" <Jim.Murray@beuc.org>

Date	27/07/2000
RE:	AOL/TIME WARNER and EMI Merger:Consumer Privacy and Choice at Stake


BEUC has written to Commissioner Monti expressing serious concerns about
the giant merger between AOL, Time Warner and EMI. We believe that such
a merger might not only seriously hinder competition in the on-line as
well as in some parts of the off-line business world but even worse
might threaten consumers' choice and the fundamental right to privacy. 

AOL is the world's largest Internet service provider. Time Warner is one
of the world's largest providers of music, magazines and movies. Time
Warner and EMI are dominant in the music market. The new giant might be
able to keep new competitors at bay and stop artists from signing to
other companies. It could decide to increase the prices for music it
owns the copyright of, making some very popular music unaffordable for
its competitors and more expensive at retail level.  There is also a
potential threat for consumer privacy. As service provider AOL has
already access to a huge number of informations on consumers' shopping
and browsing habits1. This would certainly be an enormous advantage for
this new multimedia company as compared to its competitors. It is highly
questionable for any industry to have access to personal information.
Furthermore the Trans Atlantic Consumer Dialogue already stressed that
AOL and Time Warner have been subject of numerous privacy complaints in
the US. There are serious concerns that in Europe also the current legal
framework would not be sufficient for the challenges of the new
technologies2.  

Finally there is also the risk that this new company controls, through
copyright and technical barriers, any use individuals make of its
products. The company could stop consumers from copying goods, legally
paid for, for pure private purposes.

 It is of crucial importance to set up a precedent in view of other
potential major deals in sight. The Canal +/Vivendi/Seagram merger plan
might hinder potential competition to the same extent, depriving
consumers from proper choice. These mergers could be followed by other
industry attempts to create new oligopolies in the digital market.
Therefore BEUC calls on the Commission to ensure consumer choice and
privacy protection.