BBC News Online: Business

Disney agrees to DVD probe

The company, the world's second ranking media conglomerate, has become the first of seven firms targeted by the EC to agree to the probe.

"We fully intend to co-operate with the preliminary stages of the commission's inquiry," a Disney spokeswoman said.

Mario Monti, the EU's competition commissioner, revealed on Monday he had written to Hollywood film companies asking about DVD pricing policies.

DVDs bought in America are cheaper than those available in Europe.

The discs cost between £13-£20 in the UK, while US consumers pay just $15-$25 (£11-£18).

And because of a regional disc tagging system, which can make US discs unreadable on foreign players, European customers cannot take advantage of the lower American prices.

"EU consumers are artificially prevented from purchasing DVDs from overseas," Mr Monti said.

Disney boasts well over 100 titles in its DVD catalogue, including 101 Dalmatians, Mary Poppins and Toy Story.

The other six firms contacted were: Sony and its Columbia Pictures unit, AOL's Warner Brothers unit, Metro-Goldwyn-Mayer, Vivendi-Universal, Fox Entertainment Group's Twentieth Century Fox, and Viacom's Paramount Pictures.