Talking of SonyBMG, which we sort of were, the European Commission has given the go ahead to Sony Corp's previously reported bid to buy German media firm Bertelsmann - the BMG bit of SonyBMG - out of the major record company. Given all the regulatory stress that surrounded the merger of Sony and Bertelsmann's record companies back in 2004, approval for the deal that will put ownership of the mega-major into the hands of one conglomerate came without much hassle.
Though, needless to say, not without some opposition. Pan-European indie label trade body IMPALA, who have opposed the creation of SonyBMG from day one, and who added to the major's regulatory woes by successfully overturning the original European Commission decision to approve the 2004 merger, are not impressed.
They said in a statement yesterday: "IMPALA finds it incredible that the Commission can take such a consequential decision without carrying out an in-depth investigation. This is a completely different merger to the SonyBMG joint venture that has been approved twice by the Commission but is still in court under appeal. The new merger will fully integrate the world's second largest music company with the largest consumer electronics company, creating a wide array of new vertical and horizontal problems as the industry progresses toward digital delivery of music through multiple platforms.
IMPALA is awaiting the text of the EC's decision so that it can determine its course of action".
IMPALA Co-President Patrick Zelnik added: "It is difficult for us to understand how there can be such a difference between what the Commission says and what the Commission does. Cultural diversity is meant to be properly taken into account in all decisions. Merger control rules must be adapted to cultural industries".