[Random-bits] BEUC press release on EU AOL/TW announcement

[James Love]

http://www.beuc.org/public/press/pr2000/content.htm

B E U C - Bureau Européen des Unions de Consommateurs - The European
Organisation Avenue de Tervueren 36, bte 4, B-1040 Bruxelles, Tél:
(+32-2) 743 15 90, Fax: (+32-2) 740.28.02
Information: Jim Murray / Dominique Forest / Ursula Pachl
Date: 11 October 2000
Reference: PR 2000/31
AOL TIME WARNER 
REACTION OF BEUC, THE EUROPEAN CONSUMERS' ORGANISATION

The Commission has announced its conditional approval of the AOL/Time
Warner merger. In BEUC's arguments against the proposed merger, we
expressed particular concern on the issue of data protection and
privacy. AOL has access to an enormous amount of data about the
web-surfing, buying and consumption behaviour of their subscribers -
including, for example, information about the extent to which their
subscribers log onto competitors of Time Warner. If Time Warner have
access to this data they will enjoy a huge competitive advantage and
consumer privacy will be reduced correspondingly. We call on the
competition and data protection authorities around the EU to carefully
monitor the effects of the merger, both in terms of data protection and
competitive advantage. One of the objectives of AOL is to improve the
"stickiness" of their web-site. They want their subscribers to spend as
much time as possible on the AOL site, dealing with companies directly
available on that site and not leaving that site to contact competing
companies. Access to Time Warner content will improve the stickiness of
the AOL web-site and act as a disincentive for subscribers to go
elsewhere. It would also discourage new entrants into the market. This
is a matter which competition authorities must monitor very carefully.
END