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.