Will the SonyBMG merger ever be completely resolved? The rights and wrongs of Sony Corp and Bertelsmann merging their recorded music operations back in 2004 was being discussed in European circles again this week after a member of the European Parliament asked if the decision by the European Commission to approve the merger for a second time earlier this month was "coherent" with its policy of supporting small and medium sized enterprises (those SMEs) across the cultural industries.
As you might remember, the European Commission was forced to reconsider the merger that created SonyBMG after pan-European indie labels body IMPALA successfully appealed the original Commission ruling, that gave the deal the go ahead, through the European Courts. The Court ruled that in their original investigation EC competition officials had not reviewed the ramifications of the merger in sufficient detail. Said officials subsequently re-reviewed the ramifications, this time in lots of detail, and at the start of this month again reached the decision that the SonyBMG merger was not bad news for the overall music business.
But in a written question in the European Parliament this week, French socialist Guy Bono questioned that second ruling. He's not entirely un-influential in this domain, because he sits on the EP's Culture Committee and is currently leading that Committee's report on the cultural industries.
On the SonyBMG merger, he says: "The European Parliament is exercising democratic control over European institutions by interrogating the Commission on the SonyBMG merger. Like many cultural sectors, music suffers from chronic concentration. Artists and cultural SMEs need to be supported as they play a key role in fostering creativity and innovation as well as growth and employment in Europe. We must put cultural diversity at the heart of EU policy".
The European Commission will now have to respond to Bono's question within three weeks, again justifying its support for the merger.
Bono's questioning of the latest approval was welcomed by IMPALA, who themselves have lodged a complaint over the Commission's decision with the European Ombudsman. IMPALA President, Patrick Zelnik, told reporters yesterday: "I am pleased to see that the European Parliament is interrogating the Commission on the SonyBMG merger on behalf of thousands of entrepreneurs and artists across Europe. We rely on the Parliament to ensure the Commission is held to answer. The question posed by Guy Bono clearly highlights many of the key concerns voiced by IMPALA in the aftermath of the decision".