AOL/TIME WARNER DEAL
UNDER EC SCRUTINY

The European Commission will rule on Monday whether to clear the merger of AOL and Time Warner or open an in-depth four-month investigation into the deal.

The Commission, the antitrust watchdog for the 15-nation European Union, was due to rule by June 8, but extended its deadline to June 19 after the firms offered unspecified concessions to address competition concerns.

AOL announced plans to join forces in January in a deal worth around $125 billion. That deal was agreed shortly before Time Warner's music operations agreed a joint venture with Britain's EMI Group.

Earlier this week, the Commission opened a four-month extended probe into the WMG-EMI venture, saying it would lead to an oligopoly of four firms dominating the West European recorded music market.

It also stressed its detailed investigation would also focus on music publishing and digital delivery of music via the Internet, suggesting the Commission wants to take an extremely hard look at any mergers involving major players in the burgeoning Internet market.