DISNEY STEPS UP PROTEST AGAINST AOL-TW MERGER

Disney delivered an attack on America Online and Time Warner on Tuesday in a widely anticipated filing with the Federal Communications Commission, insisting that the two congloms may lock out competitors from the interactive TV market and undermine First Amendment values unless regulators put some heavy restrictions on their proposed merger.

Preston Padden, Disney executive VP for government relations, told Daily Variety that the Mouse House isn't asking the FCC to can the merger but to ensure that the combined companies aren't in a position completely to control distribution and content.

Disney ideally wants the FCC to separate those two pieces of AOL-Time Warner's business.

In a lengthy filing, Padden said AOL and Time Warner "have shown over and over again that they will not hesitate to thwart competition and consumer choice to maximize monopoly profits."

"If the FCC imposed their conditions on all companies in the industry, Disney could not exist as it does [owning ABC]," said Time Warner spokesman Ed Adler.