| Series Title | European Voice |
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| Series Details | Vol.11, No.33, 22.9.05 |
| Publication Date | 22/09/2005 |
| Content Type | News |
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Date: 22/09/05 Independent record companies opposed to the merger of Sony Music and BMG will be heard at the European Court of First Instance (CFI) today (22 September), in the first EU-level appeal against a tie-up in the entertainment sector. Impala, a Brussels-based association representing 2,500 independent music labels, argues that the European Commission approved the merger in July last year without properly estimating the economic impact on small- and medium-sized businesses (SMEs) and despite an earlier judgement that the media market was already sufficiently concentrated. "SMEs are highly competitive and innovative, but they can often not get to market because they cannot get onto radio or into the shops," said Impala's Helen Smith. "Concentration at the top end of the market will make that worse." During the investigation into the tie-up, Sony Music and BMG argued that the merger made sense because of the economic downturn in the music market, partly fuelled by online piracy and counterfeiting. The merged company, with headquarters in New York, has brought under the same roof stars such as Beyonce Knowles and Britney Spears and created the world's second largest music group after Vivendi Universal. The CFI has shown before that it is not afraid to overturn a decision by the Commission's competition authorities, since, in 2002, it ruled against the Commission's ban on proposed tie-ups between AirTours and First Choice and Schneider and Legrand but Impala is trying to get the CFI to reverse a clearance. If the CFI comes down in favour of Impala, a decision which should be known in a few months, the Commission will have to decide what measures should be taken to dilute Sony BMG's market power. A lawyer close to the situation said that the two media giants could choose to break up the merger but that this was "unlikely". If the CFI rules in Sony's favour other media tie-ups could follow. Article anticipates a hearing at the European Court of First Instance (CFI) on 22 September of independent record companies which were opposed to the merger of Sony Music and BMG. This was the first EU-level appeal against a tie-up in the entertainment sector. Impala, a Brussels-based association representing 2,500 independent music labels, argued that the European Commission had approved the merger in July 2004 without properly estimating the economic impact on small- and medium-sized businesses (SMEs) and despite an earlier judgement that the media market had already been sufficiently concentrated. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Culture, Education and Research, Internal Markets, Law |
| Countries / Regions | Europe |
