In the face of European Commission (EC) regulatory hurdles, Warner Brothers Music Group and EMI have scrapped their $20 billion joint venture.

"They have withdrawn the deal," EC spokesman Michael Tscherny said.

Meanwhile, European Union (EU) competition regulators will meet on 12 October to discuss the merger of AOL with Time Warner, Tscherny said.

The hastily arranged meeting was scheduled at the beginning of this week to discuss rulings on both the EMI/Warner Music joint venture and the AOL/Time Warner merger.

"The committee will discuss the AOL deal. Last time, it [the committee] met it discussed a draft negative decision reached by the Commission. It is meeting again, so you can presume they are discussing something different," Tscherny said.

The so-called advisory committee consists of national competition regulators, as well as members of the Commission's merger task force.