EU probes Microsoft, Time Warner alleged monopoly

The pair have formed a joint company called ContentGuard which develops technology used for digital rights.

It was originally part of copy king Xerox's Empire and was spun off as a separate business in January. During the sale a bit was flogged to Vole with Xerox getting the lion's share.

However when Xerox's stake was flogged to Time Warner in April the company was restructured so Microsoft has equal ownership stakes with the new owners. According to US wires, the EU is worried that the transaction might possibly create or strengthen a dominant position by Microsoft in the market for digital right management (DRM) solutions.

Under Microsoft's and Time Warner's joint ownership ContentGuard may have both the incentives and the ability to use its intellectual property rights portfolio to put Microsoft's rivals in the DRM solutions market at a competitive disadvantage.

If the Commission gives the deal the thumbs down, it would close the European market to ContentGuard. µ