Well, needless to say, pan-European trade body IMPALA are not impressed that the SonyBMG merger has been approved for a second time. As previously reported, the European Commission yesterday announced it was giving the all clear to the merger of Sony Corp and Bertelsmann's recorded music businesses that took place in 2004. The Commission was re-reviewing the merger proposals three years on after the European courts - who reviewed the original merger approval at IMPALA's request - said the Commissioners were guilty of procedural errors back in 2004 when they originally approved the merger. But after a much more in depth investigation into the implications of a merger of Sony and BMG's record labels the Commissioners reached the same decision - the merger was sound.
Responding to the second round of approval, IMPALA yesterday called for a formal inquiry into the latest EC investigation. The trade body told reporters yesterday: "The independents take the view that this is indefensible. The Commission has ignored major findings of the European Court in favour of IMPALA last summer. The independents will ask the European Ombudsman to investigate potential maladministration. IMPALA will examine the decision in detail when the non-confidential version becomes available. As well as a formal enquiry, there is the option of appealing, and a clear case for claiming damages against the EC".
IMPALA are also asking why when BMG's music publishing operation was bought by Universal earlier this year, Universal were forced to agree to conditions in order to gain EC approval of the takeover (ie selling some bits off), while the SonyBMG merger has been given unconditional approval.
Commenting on the latest EC decision, IMPALA President Patrick Zelnik told CMU: "The EC has ignored the simple fact that four companies control 95% of the music most citizens hear on the radio throughout the world. What kind of a message does this send to European citizens? That the EU's prioritisation of cultural diversity, creative SMEs and pluralism is purely rhetoric?"
The association's Chairman, Martin Mills, added: "The Commission has simply repeated its previous mistakes. It has ignored the independents' evidence on anti-competitive behaviour in retail, radio and television, press and of course, the vital on-line market. It is a lost opportunity for Europe's artists and entrepreneurs. How can the EC demand remedies in UniversalBMG and not in SonyBMG? This just doesn't make sense".