According to a report reviewed by the Reuters press service, the European Commission believes that the proposed acquisition of Time Warner Inc. by America Online Inc. would create a dominant company that could impede competition.

According to Reuters, the Commission’s report, setting out its preliminary findings, states that the merger, “would create a dominant position in the markets for on-line music delivery, music software, internet dial-up access, broadband internet access and integrated broadband content as a result of which effective competition would be significantly impeded in the common market.”

Representatives of both companies will meet this week with the Commission’s competition department to discuss the objections.

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