Friday

29th Mar 2024

MEP questions European Commission over Sony BMG merger

The European Commission is being questioned over its decision earlier this month to approve a merger between Sony and Bertelsmann's music divisions named Sony BMG Music Entertainment.

As a result of the merger, the group has become the world's second biggest music company, only slightly behind Universal Music Group. They each control approximately one quarter of the global market in recorded music.

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But French socialist MEP Guy Bono fears the merger could limit competition and ultimately harm cultural diversity in Europe.

In a written question to the commission on Tuesday (30 October), Mr Bono asked if the EU executive's authorisation of the merger was "coherent" with EU policies on cultural diversity, on small- and medium-sized companies in the cultural sector, as well as the commission's own concerns about competition issues in the European music sector.

The commission noted earlier this year that in the field of online rights music publishers have started to withdraw their respective rights for Anglo-American song repertoires from the traditional collecting societies system in Europe.

Following these withdrawals, pricing power has shifted from the collecting societies to the publishers, it said.

\"Chronic concentration\"

"Like many cultural sectors, music suffers from chronic concentration," Mr Bono said in a statement on Tuesday (30 October).

"Artists and cultural SMEs need to be supported as they play a key role in fostering creativity and innovation as well as growth and employment in Europe. We must put cultural diversity at the heart of EU policy," he added.

His statement comes in support for the independent music labels – represented by the Independent Music Companies Association IMPALA - which are fighting the Sony BMG merger.

Brussels' authorisation of the merger earlier this month came after more than a year of legal uncertainty after the EU's second highest court - the European Court of First Instance – last year overturned a previous commission 2004 decision to clear the deal following a complaint from IMPALA.

The association has lodged another complaint with the European Ombudsman to investigate potential mal-administration, arguing that the commission has ignored the major findings of the EU court in its analysis of the Sony BMG merger.

Under EU rules, the commission has three weeks to reply to Mr Bono's written question.

Independent music labels calls on Brussels to check Universal

Independent music labels are challenging what they call the dominance of the Universal Music Group and call on the European Commission to examine the sale of some publishing assets of the largest business group in the recording industry.

Brussels looks into music merger

The European Commission this week restarted an investigation into the merger between music company giants Bertelsmann Music Group and Sony Music, after the European Court of Justice last year overruled the EU executive's previous green light to the merger.

Brussels approves music merger again

The EU's competition authority has for the second time approved a merger between Sony and Bertelsmann's music divisions named Sony BMG Music Entertainment – making it the world's second biggest music company.

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