The European Commission finally got round to releasing their 'Statement Of Objections' regarding the proposed Sony BMG merger yesterday. The two majors now have two weeks to address the legislator's concerns.
While not commenting on the specifics of the Statement, Sony were keen to stress yesterday that the existence of such a Statement was standard practice and did not imply European officials were generally negative towards their proposals. In an official statement the major record label said: "In almost all phase II cases, the Commission issues a Statement of Objections. It is a summary of the issues identified to date by the Commission staff and does not prejudge the outcome of the proceeding. Indeed, the vast majority of transactions that receive Statement of Objections are ultimately cleared. Sony and BMG will now have an opportunity to comment on the Statement of Objections and to adduce additional evidence responsive to the issues raised. We remain confident that the European Commission will ultimately find that the Sony BMG joint venture is a pro-competitive response to the challenges faced by the recorded music industry."
Meanwhile pan-European independent trade group IMPALA has confirmed reports in the London Financial Times that they are considering an attempt to block the Sony BMG merger through the courts if EU officials are not hardline in the restrictions they place on the two majors prior to any merger. The trade association's Alison Wenham - also boss of the UK's Association Of Independent Music - told reporters yesterday: "We are actively considering legal action because we think this deal is a real threat to diversity". Such a legal fight might take place in British or French courts, or both.