Search  About Salon  Table Talk  Newsletters  Advertise in Salon  Investor Relations

Salon.com

Multimedia
[Arts & Entertainment][ Books ][ Business ][ Comics ][ Health & Body ][ Mothers Who Think ][ News ][ People ][ Politics ][ Sex ][ Technology ]

Article Finder
Business


 


Media
- - - - - - - - - - - -


Fight the power


Fight the power
A group of consumer advocates and content providers is fighting the merger of AOL and Time Warner. These strange bedfellows won't kill the deal, but they could alter it for the better.

- - - - - - - - - - - -
By Sean Elder

June 14, 2000 | As the merger of America Online and Time Warner lumbers toward its sweaty conclusion, odd pockets of resistance -- all joined by a singular desire to derail this megamarriage before it starts -- are cropping up in unlikely places.

Among the strange bedfellows: Internet service providers and Web sites that fear a lockout from an AOL Time Warner network, the authors of much of the content of the Time Inc. magazine division, skeptical congressmen from both political parties and a consortium of consumer advocacy groups encouraged by Disney.




Print story


E-mail story


Backflip This Story  Backflip this article to find it again


Though this motley insurgency stands a snowball's chance in hell of actually derailing the merger -- the government has until the end of the year to approve it -- the assorted partisans (most of whom are fighting in the name of public interest and consumer protection) could wind up altering the nature of the agreement, quite likely for the better.

Open Sesame

The biggest gun in the arsenal aimed at AOL Time Warner is a 158-page "Petition to Deny" presented to the Federal Communications Commission and the Federal Trade Commission by a consortium of consumer interest groups. The irate consumer organizations include the Consumers Union, the Consumer Federation of America, the Media Access Project and the Center for Media Education.

The consumer interest groups' argument against AOL Time Warner should be familiar to anyone who has paid even partial attention to the antitrust debates surrounding media mergers: It concerns the question of open access.

Simply stated, open access is the right of other ISPs to use the broadband networks that AOL Time Warner (and AT&T) will be tempted to hog by nature of their vast cable holdings.

"At the end of the day, these guys are going to control everything," says Jeffrey Chester of the CME. "That's why open access is important. If you're going to live in a world dominated by a few media companies, you have to have an architecture that permits a greater diversity of voices."

Even AOL used to think open access was important. Before the deal with Time Warner, Steve Case and company campaigned tirelessly for open access. Afraid that AT&T (which controls the Excite@Home network) and Time Warner (with its Roadrunner service) had sewed up the future using fiber-optic cable, AOL wanted Uncle Sam to guarantee that its own service would be delivered on that fast rail. It spent tens of millions of dollars funding OpenNET, an independent group that advocates open access via government regulation.

Then Case decided to buy Time Warner. And in a conversion that rivals Constantine's move to Christianity, the whole open-access problem was no longer quite so nettlesome.

. Next page | Meet the petitioners
1, 2, 3, 4



Illustration by Katherine Streeter/Salon.com


 

Need a gift? Visit Salon Shop for inspiration.




More great offers in
Salon Plus

____
 
   
 
____
 
  Current Stories
  • I went to Brand Camp and all I got was this dumb snack-food epiphany We have seen the reality TV of the future, and it is 20 hipsters spending a loft weekend thinking about packaged goods.
    By Ruth Shalit
  • Is it safe? When violence flares and travelers beware, who profits from the scare?
    By Don George
  • Bull market for market bull The villain in "M:i-2" demands a new popular-culture perquisite: Stock options.
    By Steve Bodow
  •  

    Sign up to receive free e-mail updates from Salon -- now in 17 different varieties!



    Salon  Search  About Salon  Table Talk  Newsletters  Advertise in Salon  Investor Relations


    Arts & Entertainment | Books | Business | Comics | Health | Mothers Who Think | News
    People | Politics | Sex | Technology and The Free Software Project
    Letters | Columnists | Salon Plus | Salon Shop


    Reproduction of material from any Salon pages without written permission is strictly prohibited
    Copyright © 2000 Salon.com
    Salon, 22 4th Street, 16th Floor, San Francisco, CA 94103
    Telephone 415 645-9200 | Fax 415 645-9204
    E-mail | Salon.com Privacy Policy