The European Union's top antitrust official said Monday he is closely watching the powerful market positions of Internet units set up by former national telecommunications monopolies, including Deutsche Telekom's T-Online subsidiary.

The Liberalization of European telecoms markets has left some former monopolies and their online units in a particularly strong position, Monti said in a speech at a conference on competition in Berlin.

"The position of T-Online here in Germany, for example, appears to be very strong."

T-Online, Europe's largest Internet access provider, is already under scrutiny from EU officials. Monti's office opened an in-depth probe May 8 into a joint venture between T-Online, leading German tour operators TUI and C&N and airline Lufthansa.

The Commission warned at the time that this "powerful and unique" alliance could leave consumers with less choice for online travel services. It is to rule on the case by September 14.

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