The 2004 merger of Sony and Bertelsmann's recorded music businesses was back in the European courts again yesterday for what was arguably a redundant hearing.
The European Court Of Justice was hearing an appeal by SonyBMG of the ruling last year that said the European Commission was wrong to give the merger that created the major the go ahead, based on the investigations they had undertaken at the time. As previously reported, that ruling forced EC competition officials to reinvestigate the merger. And as also previously reported, they did exactly that, and reached the same conclusion, that the merger was sound. Which is why the latest hearing is in some ways redundant, because SonyBMG have achieved a second approval of their merger, meaning the fact the first approval was overturned is no longer really relevant.
However, pan-European indie label trade body IMPALA said yesterday that the ruling in the appeal case was, nevertheless, important because if the original ruling was overturned it would set a precedent that would rewrite merger controls in Europe to the advantage of major conglomerates who merge. IMPALA claim that SonyBMG's appeal should be rejected because the merger is, they argue, trying to appeal on points of evidence, whereas the appeal court will only consider points of law - ie the appeal court cannot revaluate the evidence presented in the original court case, only whether the original judges interpreted European competition laws correctly. IMPALA have another reason to not want the original ruling against SonyBMG overturned - the major is pushing for the trade body to have to pay its legal costs should it be successful in its appeal.
All of this is unrelated to IMPALA's response to the second ruling by EC competition officials which again approved the merger. That ruling has been referred by the trade body to the European Ombudsmen, while concerns about it have also been raised in the European Parliament.
All in all, don't think the SonyBMG merger story is over just yet. Advocate General Juliane Kokott should rule on SonyBMG's appeal on 13 Dec.