Sony, Bertelsmann merger ‘flawed’

BRUSSELS – Independent music producer association Impala said yesterday a decision by the European Commission to clear Sony Corporation and Bertelsmann’s recorded music merger is “flawed” and that it is now mulling its options.

The association said in a statement its members “are very disappointed that the EU has authorised this merger without any attempt to solve the competition issues that the Commission itself identified”. “They remain of the view that this decision is fundamentally flawed.This is a sad day for Europe’s artists, entrepreneurs, culture, diversity and citizens”, it added.EU commissioners early on Tuesday confirmed a widely flagged decision to clear the merger unconditionally – after the companies jumped the gun by announcing the ruling themselves on Monday.Previously, the independent music group, which has protested vigorously against the merger since it was announced, said it would take legal action against the clearance.Following the announcement, Impala said: “The independents await a copy of the decision which they will receive once the parties remove their business secrets.As soon as they receive the full decision they will be able to properly consider their options.”The Commission cleared the deal on Tuesday after dropping concerns that the reduction in the number of music majors to four from five would harm competition on EU markets.The commission said it failed to find evidence to back up claims the deal is anti-competitive.During the four-month investigation, Impala had protested that the remaining majors – Universal, EMI, Time Warner and Sony/BMG – would be able to hold CD prices artificially high and that artists would get less advantageous contractual terms.Martin Mills, board member of Impala, said: “The regulators have sadly chosen not to support creativity in music, meaning that the values of open market access for music from all sources have been subordinated to the economic desires of multinational corporations.”-Nampa-AFP”They remain of the view that this decision is fundamentally flawed.This is a sad day for Europe’s artists, entrepreneurs, culture, diversity and citizens”, it added.EU commissioners early on Tuesday confirmed a widely flagged decision to clear the merger unconditionally – after the companies jumped the gun by announcing the ruling themselves on Monday.Previously, the independent music group, which has protested vigorously against the merger since it was announced, said it would take legal action against the clearance.Following the announcement, Impala said: “The independents await a copy of the decision which they will receive once the parties remove their business secrets.As soon as they receive the full decision they will be able to properly consider their options.”The Commission cleared the deal on Tuesday after dropping concerns that the reduction in the number of music majors to four from five would harm competition on EU markets.The commission said it failed to find evidence to back up claims the deal is anti-competitive.During the four-month investigation, Impala had protested that the remaining majors – Universal, EMI, Time Warner and Sony/BMG – would be able to hold CD prices artificially high and that artists would get less advantageous contractual terms.Martin Mills, board member of Impala, said: “The regulators have sadly chosen not to support creativity in music, meaning that the values of open market access for music from all sources have been subordinated to the economic desires of multinational corporations.”-Nampa-AFP