EU antitrust regulators set out formal objections to Universal EMI bid

EU antitrust regulators have now set out formal objections to Universal Music Group’s $1.9 billion bid for EMI’s recorded music unit as part of its examination process.
The label giant released a statement on Tuesday, referring to the regulatory document:

“As part of the European Commission’s customary process when considering mergers, they have provided us today with a statement of objections.

“We are preparing a detailed response to the Commission’s statement which will address the concerns outlined in this procedural document. We will continue to work closely with the Commission and look forward to securing regulatory clearance,”

While the measures needed to satisfy regulators remain under wraps, speculation suggests that Universal could promise to sell off catalogues or offer licensing deals with more favorable terms to rivals and online services.

Last week, EU Competition Commissioner Joaquin Almunia expressed concerns about how the market power of the combined group would impact on the digital music market. Independent labels and rival Warner are opposing the takeover.

The Commission has set a September 6 deadline for its decision. The U.S. Federal Trade Commission is also reviewing the deal.

Vivendi’s CFO Philippe Capron said in May that he was “very confident” that decisions made by the regulators will enable the company to go ahead with the acquisition and didn’t see opposition to the proposed deal outside of Universal’s direct competitors.

Source: Music Week