[Random-bits] Alec Klein: Groups Seek Watchdog System for AOL-Time Warner

[James Love]

http://www.washingtonpost.com/wp-dyn/articles/A48663-2000Oct10.html
Groups Seek Watchdog System for AOL-Time Warner (washingtonpost.com)

by Alec Klein Washington Post Staff Writer
 Wednesday, October   11, 2000; Page E03

Several public interest groups called on federal regulators yesterday to
establish an independent enforcement system to ensure that America
Online Inc. and Time Warner Inc. do not discriminate against rivals
after the two companies merge to create a media powerhouse.

Leaders of Consumers Union and other groups said they hope to meet with
regulators at the Federal Communications Commission soon to discuss
their plan to create an arbitration panel that would monitor the actions
of Dulles-based AOL if regulators approve its $183 billion takeover of
Time Warner.
  
"The cable services bureau is looking forward to meeting with them,"
said Deborah Lathen, the FCC's cable chief.</P>

The consumer groups are seeking a separate meeting with the Federal
Trade Commission, which also is reviewing the deal.

   [snip]

AOL has imposed contractual conditions on Walt Disney Co. in an attempt
to deter users from leaving AOL's network to reach competitors on the
Web, sources have told The Washington Post. Also, Time Warner has
offered several Internet service providers access to its cable
television lines, but only under conditions that would give Time Warner
a big chunk of their revenue and control over key content, documents
show.<

"These [reports] reflect in essence the smoking gun, a pattern of
deviating from open, nondiscriminatory access principles through onerous
contractual terms," said Gene Kimmelman, co-director of the Consumers
Union, the advocacy group that publishes Consumer Reports magazine.

Kimmelman said he will be joined in these meetings by the Consumer
Federation of America, the Media Access Project and the Center for Media
Education.


[snip]


Separately, AT&T Corp. General Counsel James W. Cicconi met recently
with FCC Chief of Staff Kathryn Brown to press the agency to require
Time Warner to buy AT&T's 25.5 percent stake in Time Warner
Entertainment, according to FCC filings. AT&T and Time Warner are far
apart on coming to financial terms, according to sources.
   

-- 
James Love  mailto:love@cptech.org http://www.cptech.org
Consumer Project on Technology, P.O. Box 19367, Washington, DC 20036
voice 1.202.387.8030  fax  1.202.234.5176