America Online chairman Steve Case and Time Warner chairman Gerald Levin returned to Capitol Hill Thursday, defending their giant merger of old and new media companies for the second time this week.

But lawmakers on the Senate Commerce Committee_s telecommunications subcommittee focused most of their questions on general Internet policy issues, like privacy, taxation and telephone service subsidies. On Tuesday, the two executives faced more hostile questioning from the Senate Commerce Committee focusing on the companies_ pledge to share Time Warner_s high-speed Internet-over- cable service with competing Internet service providers. Some senators on the telecommunications subcommittee expressed similar skepticism, but much of the hearing was spent discussing general issues. Case said AOL, the No. 1 online service, still favors voluntary industry rules to safeguard the privacy of consumers, but added he would be willing to discuss possible legislative proposals if Congress determined that new laws were needed.