Sony-BMG

[brownie]

The EU is all set now to recommend the Sony-BMG merger.

From Reuters:

EU's Monti to Recommend Sony BMG Merger

By David Lawsky

BRUSSELS (Reuters) - Sony Music and BMG took a big step toward completing a proposed record company merger on Thursday, winning unconditional backing from the European Union's top antitrust official, sources close to the situation said.

European Competition Commissioner Mario Monti decided to recommend the merger after meeting with BMG Chairman and Chief Executive Rolf Schmidt-Holtz and consulting with his staff, sources said.

The full European Commission  will act before a July 22 deadline and the U.S. Federal Trade Commission also is expected to give the needed approval, one of the sources said.

A combination of Sony Music, a division of Japanese electronics giant Sony Corp, and BMG, a unit of German media company Bertelsmann AG, would be roughly the same size as market leader Vivendi's Universal Music Group. The deal brings together a wide-ranging roster of artists, including Aerosmith, Beyonce, Britney Spears and Bryn Terfel.

The commission staff had originally argued in a confidential 51-page statement of objections that the deal would strengthen the collective dominance of the major record companies by reducing their number to four from five.

The merger "would significantly enhance a situation of collective dominance in which the majors (big record companies) try to align their pricing policies," the statement of objections said.

'DEVIL'S ADVOCATE' SPEAKS

But an internal "devil's advocate" panel decided this week that the Commission had failed to make its case that the combination would strengthen the ability of the major record companies to set prices in tacit collusion, as the Commission had alleged.

The decision by Monti came as a surprise to opponents of the deal, who had hoped at least for a set of stiff conditions that would rein in the record companies, especially in the growing market for on-line music. Some have threatened to sue.

Among those testifing in opposition to the deal were Apple Computers, whose iTunes Web site was introduced to Europe this week. It faces potential competition from a Web site owned by Sony.

But Monti was concerned about the courts. The EU's Court of First Instance in Luxembourg has thrown out three Commission prohibitions, deciding that the Commission failed to prove its cases and setting a high bar for proof.

At two days of closed hearings earlier this week -- where Sony, BMG, their critics and their allies aired their views -- one lawyer warned the Commission that it had best remember the high standards of proof set by the court, sources said.

[Claude]

Sorry for nitpicking, but there is a strange choice of words in this news report. The EU commission doesn't "recommend" or "back" mergers, it just can oppose it or not. Like the competition authority in every country, the Commission checks if the merger threatens competition on the EU market. If the examination of the case reveals no sufficient arguments to oppose the merger, the EU must approve it.

Personally I think this growing concentration in the music industry (omly four big record companies remain) is bad for the diversity in the sector.

[king ubu]

Sorry for nitpicking, but there is a strange choice of words in this news report. The EU commission doesn't "recommend" or "back" mergers, it just can oppose it or not. Like the competition authority in every country, the Commission checks if the merger threatens competition on the EU market. If the examination of the case reveals no sufficient arguments to oppose the merger, the EU must approve it.

Personally I think this growing concentration in the music industry (omly four big record companies remain) is bad for the diversity in the sector.

As far as us jazz freaks are concerned, just hope Sony does not reorganize their Legacy-imprint in BMG-manner - that would mean no more jazz at all... or hardly any...

Support the small and independent labels by buying their releases!

ubu

[Jazzmoose]

Support the small and independent labels by buying their releases!

ubu

Say it again, brother!

[JSngry]

So what would you call the merger between Nippon & Nipper anyway?

His Master's Six Eyes?

[jazzbo]

At least it's not Victor (Japan) BMG. . . that would be Victor/Victoria!