EC approves AOL-Time Warner mega merger

As part of the agreement, AOL Europe will sever all links with German media group Bertelsmann in which it has a 50 per cent stake. This will sever any potential tie-ups between Warner's music interests and Bertelsmann's BMG.

AOL has also agreed that AOL France, a joint venture with Vivendi, will be similarly restructured. Vivendi itself is already under scrutiny over its planned merger with Seagram, which owns Universal Music.

According to reports, Time Warner also said it will not discriminate against non-AOL-affiliated ISPs for the provision of online music for five years, and will make its music available on other internet systems. It will also have to make its music compatible with at least three software music players not owned or controlled by it or AOL.

AOL has also committed not to force content providers wanting to sign a deal with AOL in the US to sign an exclusive deal in Europe for three years.

The deal is still awaiting Federal Trade Commission and Federal Communications Commission approval. Both agencies are expected to make a ruling in the next few weeks.

Don't forget to check out silicon.com's special feature Broadband: Beyond ADSL at http://www.silicon.com/broadband