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.