IMPALA Welcomes Start Of Universal/EMI Regulatory Process In Europe, Expects Outright ‘no’ To Protect Online Market And Consumer Prices

With Universal finally notifying its EMI deal in Europe two months after filing in the USA and three months after the sale was announced, independent music companies welcome the start of the official regulatory process.
Helen Smith, IMPALA Executive Chair commented: “The clock has finally started ticking in Europe. Ultimately we expect this to lead to an outright rejection of both Uni/EMI and Sony/EMI mergers. Keeping the online market as open as possible is essential for competition and for responding to piracy, as well as other market problems. Turning music into a two-horse race would hamper the natural development of the market and increase prices. No level of divestments or behavioural undertakings would prevent that from happening.”

IMPALA will now supplement the evidence already provided to the regulators in early January. IMPALA points out that Europe has already effectively set a maximum size for music companies, which both Universal and Sony exceeded before they started bidding for EMI. Piracy and the importance of the online market, as well as other current market conditions, require an even stricterregulatory line on consolidation today than ever before. Leniency would simply result in market distortions such as increased prices, reduced output, market access restrictions, lower cultural diversity and consumer choice.

The European Commission now has to decide whether it should launch a detailed investigation. IMPALA has already received a questionnaire and will reply in due course. The same is expected on Sony/EMI. IMPALA confirms it will continue to co-operate fully with the regulators on both sides of the Atlantic, to make it clear why the deals would be the worst possible outcome for competition, artists and consumers, as well as for the development of a thriving and diverse online market.

Source:http://www.impalamusic.org