MusicDish e-Journal - June 18, 2018
MusicDish Advertising Network
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

Mergers: Commission Opens In-Depth Investigation Into Sony/BMG Recorded Music Joint-Venture
By Mi2N
(more articles from this author)
Comment | Email | Print | RSS

The European Commission has decided to open an in-depth investigation into the merger of the global recorded music businesses of Germany's Bertelsmann AG and Japan's Sony Corp. An earlier Commission decision to approve the merger in July 2004 was annulled by the European Court of First Instance (CFI) on 13th July 2006 (see CJE/06/60).

The in-depth inquiry will permit thorough analysis of the complex information required in order for the Commission to ascertain whether or not the merger strengthens or creates a dominant position in these relatively concentrated markets. The opening of an in-depth investigation does not prejudge its final result. The Commission now has four months, until 2nd July 2007, to reach a final decision on whether to approve or veto the merger.

The transaction comprises the creation of the recorded music joint venture Sony-BMG, into which Bertelsmann contributed the worldwide recorded music business of its wholly-owned subsidiary Bertelsmann Media Group ("BMG") with its labels Arista, Jive, Zomba and RCA. Sony contributed its worldwide - with the exception of Japan - recorded music business which had been operated by Sony Music Entertainment and whose labels include Columbia, Epic and Sony Classical.

The Commission initially authorized the creation of the joint venture, Sony-BMG (see IP/04/959), combining the recorded music divisions of Sony and Bertelsmann, finding that the merger did not create or reinforce collective market power (i.e. enhance the ability to impose higher prices) on the part of the music majors (Universal, Sony-BMG, Warner and EMI).

However, in its 13th July 2006 ruling on case T-464/04, the Court of First Instance considered the evidence relied on by the Commission insufficient to explain the decision and annulled it. The Commission is therefore re-assessing the transaction.

The assessment is carried out under the previous Merger Regulation (4064/89), applicable to merger agreements signed before 1 May 2004, applying the test of whether the merger strengthens or creates a dominant or collective dominant market position in the territory of the European Union as it stood before 1 May 2004 (i.e. 15 countries) or a substantial part thereof. The Commission will evaluate the transaction in the light of current market conditions, taking into account developments since 2004, including the growing sales of online music.

The 2004 investigation focused, in particular, on whether the merger would create or strengthen a collective dominant position among the major music recording companies. This will also be an important element of the current extensive market investigation.

Related News from Mi2N:
» Mergers: Commission Opens In-Depth Investigation Into Sony/BMG Recorded Music Joint-Venture

Home » News Beat » Mergers: Commission Opens In-Depth Investigation Into Sony/BMG Recorded Music Joint-Venture
Email |Print |Comment |RSS

back | top

MusicDish Advertising Network

News Beat

» 13 Music Label Sold to MTN

» Darcus Beese Named President Of Island Records

» ASCAP Revenues Top $1.144 Billion In 2017

» BMG Appoints New Creative Directors In Nashville

» Launches Its First Live Musical Themed Content Series

News Beat Directory

» [2018-06-06] Screen Music Connect To Explore The Music Of Film, Television And Interactive Media; Created By James Hannigan, Award-winning Composer And Game Music Connect Co-founder, Screen Music Connect Builds On The Success Of The Sold-out Game Music Conferences

» [2018-06-05] Fred Casimir To Develop BMG's Global Recordings Business; As Well As Building BMG's European Infrastructure, Casimir Was Instrumental In Developing BMG's Recordings Business

» [2018-06-03] 13 Music Label Sold To MTN; DSN Music Spins Off Record Label To Albuquerque Music Entrepreneur's New Group

» [2018-06-02] CISAC 2018 Annual Report; A Comprehensive Overview Of The Confederation's Work To Serve 4 Million Creators And 239 Authors Societies Across The World

» [2018-06-02] MusicDish Announces A Love Electric 2018 China Tour; The Tour Will Crisscross Through China With 12 Shows In 8 Cities, Including Guangzhou, Dongguan, Zhuhai, Shenzhen, Kunming, Jiaxin, Wuhan And Beijing

» [2018-06-02] Darcus Beese Named President Of Island Records; Renowned U.K. Music Executive To Join Universal Music Group's U.S. Label Leadership

» [2018-05-17] Avant-Garde Label Maybe Noise Launches In Beijing; The Official Launch Will Be On May 26 At Magnet Theater With A Performance Supporting Its First Vinyl Release: Png Z

» [2018-05-04] Award-Winning Lithuanian Rock Band Colours Of Bubbles "She Is The Darkness" 2018 China Tour; The Tour Will Kickoff In Shanghai Where The Band Will Represent Lithuania During The Country's Signing To The Silk Road Music Alliance

» [2018-05-01] Hollywood Heavyweights Launch New Christian Music Label; Their Debut Release, Firma Collective - Songs For Every Soul, Was Produced By Mgrdichian And Mixed By The Legendary Brian Reeves

» [2018-04-30] Pop Artist Ava King Releases New Single; Paris-born Ava King Decided To Move To Beijing Where She Wrote For One Of The Biggest Chinese Movie Production Companies, HuaYi Brothers

» [2018-04-27] NetEase Cloud Music Sign Distribution Partnership With B2 Music; Chinese Music Streaming Service To Release Billboard "Best Of Asia" Album Series

» [2018-04-24] Skype And Mixcloud Launch "Connecting..." Podcast Series; Podcast Series Connects The Music World's Brightest Sparks And Explores The Power Of Creative Collaboration
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

2018 Summer Additions Come To Hybrid Studios

Plunky's "Love Makes Us Better" Video Is Cosmic Jazz-Funk

Deadline Looms - The 23rd Annual USA Songwriting Competition

Carys - A Different Kind Of Normal - Debut CD Release

Melvin Riley Of Ready For The World Celebrates 35 Years In The Music Business And The Re-launch Of His Solo Career And New Billing Title

Listen: Darquise Explores The Art Of The Beak Up In His Debut Single "I Say One"

Artist Matthew Schultz Releases "Promise For Keeps" Featuring Gyptian

Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2018 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships