America Online ( AOL) and Time Warner meet with European regulators on Wednesday, in an effort to convince them to give the green light to their proposed merger.

The $230bn deal, announced in January, would create the world's largest internet and media company, with the biggest internet service provider joining forces with a leading producer of films, television, news, and music.

Also under scrutiny is the proposed merger of EMI and Warner Music. The companies meet European Commission antitrust officials as well as rivals in closed-door hearings for two days.

It is as yet unclear if the companies plan to offer concessions to meet the Commission's concerns.

Last month, the Commission sent the two companies formal warnings. It said that in their current form, the two mergers would create dominant companies that could hurt competition.

It said the merger "would create a dominant position in the markets for online music delivery, music software, internet dial-up access, broadband internet access and integrated broadband content as a result of which broadband would be significantly impeded."

The Commission is expected to announce its decision on both mergers on 4 October, though it has until the middle of October to decide.

"We consider the EU actions a normal and predictable part of the review process in Europe," a Time Warner spokesman said.

"We will meet with the EU and are confident we will provide them with assurances on the issues they've raised. The merger will further enhance competition in the US and abroad. We continue to be on track to close the AOL - Time Warner merger in the fall," he added.

US challenge

But the most serious challenge to the AOL-Time Warner merger comes from the US Federal Trade Commission (FTC).

The FTC is concerned the high-speed cable systems that Time Warner is rolling out across the US, covering 20% of the population, will only be available to AOL users.

Ironically, it was concern by AOL that it would be shut out of high-speed, broadband internet services that led it to advocate "open-access" to cable systems - before it decided to buy Time Warner to assure its access to such services.

AOL spokeswoman Kathy McKiernan said the two companies "are fully committed to open access".

She noted that Time Warner recently reached an agreement to open its cable TV lines to Juno Online Services.

But US newspapers are reporting the FTC is still worried that after the deal is completed, many homes will have no choice but accept AOL-Time Warner television and internet programming on an exclusive basis.

Some of Time Warner's biggest rivals, such as Walt Disney-ABC, share those concerns, which were sharpened when Time Warner briefly took Disney programmes off its cable television service in New York.

AOL's chief executive Steve Case, and Time Warner's Gerald Levin, are to be called to testify before Congress later this month to discuss the issue.