Media conglomerate Time Warner and software giant Microsoft are to be the subject of an in-depth probe by the European Commission covering the two companies' joint control of digital rights management outfit Content Guard. The two firms had earlier asked the Commission for permission to purchase the company, which develops technology that prevents the illegal copying of digital content. After a routine, phase I, review, the Commission has decided to investigate whether the deal might create or strengthen Microsoft's already leading position in the DRM solutions market. Under Microsoft's and Time Warner's joint ownership, ContentGuard may have both the incentives and the ability to use its IPR portfolio to put Microsoft's rivals in the DRM solutions market at a competitive disadvantage. This joint acquisition could also slow down the development of open interoperability standards. As such, this would allow the DRM solutions market to 'tip' towards the current leading provider, Microsoft. The opening of a second-stage merger investigation does not prejudge the Commission's conclusions and final decision, which must be reached in a maximum of four months, i.e. until 06 January 2005.For further information please click at the EC website: http://www.europa.eu.int/rapid/pressReleasesAction.do?reference=IP/04/1044&format=HTML&aged=0&language=EN&guiLanguage=en