Mario Monti, the European Commissioner for Competition Policy,
said yesterday that competition authorities need to change the way
they look at the issue of market dominance in light of the recent
media and internet mergers.
Referring to the internet market, he said:
“The rapid growth may unduly reward first
movers onto these markets, closing down subsequent competition, and
it is this that we should be concerned about. Secondly, the
competition problems posed by the internet may well require an
analysis going beyond determinations of market definition and
market share. It may also be necessary to look at the structures of
industries, such as the music and publishing industries, to see
whether the commercial interests of parties in maintaining the
status quo is hampering the development of internet services.”
His comments come at a time when the Commission is expected to
block the proposed $126 billion merger between AOL and Time Warner
unless the companies offer more concessions than they have to
date.
EMI and Warner Music are also struggling to convince the
Commission to approve their $20 billion merger. Officials of both
companies are tomorrow expected to meet with the Commission and
offer to sell some local music labels in addition to their own.
