Hostility between the UK's top ISPs took a new twist today after Freeserve confirmed that it has filed a complaint with the US Securities and Exchange Commission (SEC) against AOL Time Warner.

Freeserve alleges that AOL Time Warner misled investors earlier this month when it reported in a financial press release that "in the UK, AOL is the leading ISP with more than 1.5 million members."

Freeserve claims that the statement is "misleading to investors to a material degree and without significant verification presents a distorted picture of AOL's position in the UK".

In a statement, the head of Freeserve, John Pluthero said: "Given that AOL has been sanctioned by the ASA about misleading claims made in their advertising and even by the SEC before for improper accounting practices, perhaps it should come as no surprise that they are once again found peddling wild and extravagant claims."

Today's dig is the latest in a series of attacks by Freeserve against AOL, although a spokesman for the company denied that the ISP was running a campaign against AOL.

Last year Freeserve attacked AOL UK because a tax loophole excludes it from paying VAT.

Freeserve claimed that the money lost to the public coffers could pay for heart operations and more police on the street. It has also threatened to sue the Government unless action is taken to close the loophole.

Freeserve’s decision to report AOL Time Warner to the SEC coincides with the publication of the ISP's latest user numbers. It claims it has 2.3 million users making it the UK's "leading" ISP.

No one from AOL was available for comment by press time. ®

Related Stories

Tax AOL now, says Freeserve
Freeserve threatens legal action against UK Govt
'If AOL UK paid full VAT it could fund heart transplants'