The pan-European body that represents the independent sector, IMPALA, has welcomed the European Commissions 'objections' to the proposed Sony BMG merger, claiming that the issues raised by European officials demonstrated they did not accept the two major's arguments that further consolidation was necessary to secure the future of the global music business.
In a statement this morning IMPALA told reporters that they disagreed with the doom and gloom picture of the short-term future of the music industry painted by Sony and BMG in their merger proposals. The independent labels say they have "an alternative view of the music market which remains full of opportunities, including technology development, provided these opportunities are not foreclosed by anti-competitive practices". They said they had asked EU Antitrust Commissioner Monti to "ensure that the independents have access to these opportunities and are not marginalised further by the unprecedented concentration envisaged by the merger current."
The European Commission issues its 'statement of objection' to the proposed merger last month. An open hearing will now be held next week to discuss those objections - the majors will either have to argue their case against the issues raised by officials, or propose compromises that will allay concerns.
But IMPALA president Michel Lambot reckons the majors will have a tough job in overcoming all concerns. He told reporters this morning: "The objections are so fundamental it's difficult to imagine remedies that would be sufficiently far-reaching to deal with the EC's concerns. In fact we have gone one step further and asked the Commission to address existing structural problems it has identified. Anti-trust authorities have a vital role in improving the market environment and the right of citizens to have access to diverse cultural expression."
Since they were published, the two major labels have been keen to stress a statement of objections is routine in merger investigations like this, and does not mean European officials will ultimately block the deal.