Showing posts with label EU Commission Competition. Show all posts
Showing posts with label EU Commission Competition. Show all posts

1/5/09

EU Commission - 05/01/09

Success for the Commission’s Register for Interest Representatives
"The Commission’s Register for Interest Representatives, launched on 23 June 2008, is progressing well. European citizens now have direct access to information on the existence, diversity and multitude of represented interests; less than six months after the Register was begun, more than 700 organisations are now registered[1], with more being added every day.

There has been a steady and constant flow of some thirty additions per week to the Register. More than 400 organisations representing business and professional organisations are registered, along with more than 150 NGOs. Specialised consultancy firms and law firms lobbying the European institutions are still not signing up." [Europa]

Telecoms: Commission clears amended nationwide Spanish broadband regulations; maintains concerns on lack of high-speed remedies
"The European Commission has, with reservations, given its green light to the Spanish draft regulation on wholesale broadband access, notified by the Spanish regulator, the Comisión del mercado de las telecomunicaciones ("CMT") on 4 December 2008. The Commission believes that the revised version of the draft measures addresses some of the issues on which the Commission had expressed serious doubts (IP/08/1704). However, the Commission still believes that regulation of wholesale broadband access should not be limited to speeds of up to 30 Mb/s. On the basis of the Commission's presently limited powers of oversight, it can only invite the CMT to change its regulatory approach in this regard.

Competition Commissioner Neelie Kroes said: "I welcome CMT's efforts to address the Commission's serious doubts. We need to ensure that alternative operators can compete effectively with Telefónica while setting the right incentives for investments in new generation networks. This would result in more innovation and better prices for consumers."" [Europa]

Judicial Review of Merger Control Decisions After the Impala Saga: Time for Policy Choices?
"Shortly following the adoption of the first EC merger regulation, a question arose among legal scholars and practitioners: will the EC courts make a sufficiently swift and thorough review of the Commission's merger decisions?1 Or, in other words, will judicial review be both effective and expedient enough to be compatible with the constraints of commercial life? The Court of First Instance (the CFI) and the Court of Justice (the ECJ, together with the CFI, the EC Courts) did not shy away from addressing these legitimate concerns. The timeliness of judicial review was significantly enhanced in 2000 when the Rules of Procedure of the CFI and the ECJ were amended to establish an expedited procedure allowing the EC Courts to give priority to certain types of cases.2 Merger control is by far the field of law that has benefited the most from the new procedure.3 As to the thoroughness of the CFI's review, it invites much less criticism now that the CFI has demonstrated its readiness to control Commission decisions extensively and annul them if need be, as illustrated inter alia by its three famous judgments of 2002 annulling prohibition decisions.4 In 2005, the importance of a thorough substantive review was confirmed by the ECJ itself in its no less famous Tetra Laval judgment (Tetra Laval II).5 All these cases were decisive milestones in the coming of age of the judicial review of merger control decisions in the EU." [GlobalCompetitionReview]

12/30/08

EU Commission: Competition - 30/12/08

EUROPEAN PARLIAMENT QUESTIONS SONYBMG APPROVALS
"The elected European Parliament has challenged the European Commission about it's speedy decision earlier this year to allow Sony Music to buy Bertelsmann out of the two companies' joint venture record company, SonyBMG, which put the second biggest music firm in the world into the ownership of one organisation, Sony Corp.

They also question the Commission's wider policy regarding allowing such big companies to be created in the music and cultural industries without safeguards to protect smaller independent firms - in essence questioning the approval of the SonyBMG merger in the first place." [CMUDaily]

Sony BMG Merger Still Under Scrutiny December 23, 2008
"The European Parliament continues to seek further scrutiny of the Sony BMG merger, although the major has since demerged and will officially be renamed Sony Music Entertainment in 2009. EC Commissioner for competition Neelie Kroes has six weeks to provide a written explanation regarding competition in the music market." [Billboard]

The standard of proof in EC merger control: the implications of the Sony BMG saga
"One of the most important developments in EC competition policy during 2006 was the Court of First Instance’s (CFI) Impala v. Commission judgment annulling the European Commission’s approval of the merger between the music units of Sony and Bertelsmann. It harshly criticized the Commission’s Decision because it found that the evidence relied on was not capable of substantiating the conclusion. This was the first time that a merger decision was annulled for not meeting the requisite legal standard for authorizing the merger. Consequently, the CFI raised fundamental questions about the standard of proof incumbent on the Commission in its merger review procedures. On July 10, 2008, the European Court of Justice overturned Impala, yet it did not resolve the fundamental question underlying the judicial review of the Sony BMG Decision; does the Commission have the necessary resources and expertise to meet the Community Court’s standard of proof? This paper addresses the wider implications of the Sony BMG saga for the Commission’s future handling of complex merger investigations. It argues that the Commission may have set itself an impossible precedent in the second approval of the merger. While the Commission has made a substantial attempt to meet the high standard of proof imposed by the Community Courts, it is doubtful that it will be able to jump the fence again in a similar fashion under normal procedural circumstances." [IES]

Pan-European Indie Label Group Attacks EC’s Decision to Allow Sony Corporation Buyout of Sony BMG (Because In Other Parts of the World, People Actually Freak Out When This Shit Happens)
"Thanks to the European Commission’s decision to let Sony Corporation gobble up Sony BMG, we’re one step closer to a multi-headed monster that will be known as Sony Music Entertainment Inc. The EC’s 2007 decision to allow the merger means that Sony Corporation of America is now free to acquire the 50% share held by Bertelsmann AG of Germany in Sony BMG. Yikes." [TinyMixTapes]

12/19/08

EU Parliament Monitor - 19/12/08

European Parliament questions Sony BMG merger
"The indie sector has been given renewed hope that the Sony BMG merger story hasn’t ended following the European Parliament’s decision to ask the EC competition commissioner to justify her decision to approve the merger of the two majors in 2004.

The European Parliament has fired off three questions to Neelie Kroes challenging the Commission about competition in the music market. The questions are:

- Why did the Commission not carry out an in-depth investigation when it adopted its last approval decision?
- What is the Commission's strategy for making sure that SMEs have market access in concentrated sectors like music?
- Will the Commission adopt new rules or guidelines on how competition policy should be adapted to cultural markets such as music?

The commissioner has six weeks to provide a written explanation, although it is unclear what action Parliament can take if it doesn’t like her answers. Meanwhile, European indie organisation IMPALA is still appealing the original EC decisions allowing Sony and BMG to merge, which led to an appeal in the Court of First Instance. An IMPALA spokesman says that the move by Parliament is quite rare and it means Kroes has to justify her decision.
SonyBMG were not commenting." [MusicWeek]

European Parliament questions Sony BMG approvals
"The elected European Parliament has challenged the European Commission about it's speedy decision earlier this year to allow Sony Music to buy Bertelsmann out of the two companies' joint venture record company, SonyBMG, which put the second biggest music firm in the world into the ownership of one organisation, Sony Corp.

They also question the Commission's wider policy regarding allowing such big companies to be created in the music and cultural industries without safeguards to protect smaller independent firms - in essence questioning the approval of the SonyBMG merger in the first place.

As much previously reported, the merger of Sony Corp and Bertlesmann's respective record companies to create SonyBMG in 2004 was not without controversy. Pan-European indie label trade body IMPALA said the creation of a company as big as SonyBMG was anti-competitive and should not be approved by the Commission (who have the power to block such deals). When the Commission then OKed the merger, without conditions, IMPALA went to the European Courts who ruled in the trade body's favour, agreeing that the Commission had failed to sufficiently investigate the merger before giving it the green light and ordering them to reinvestigate the proposals. That they did, subsequently approving the merger for a second time. IMPALA are currently appealing that Commission decision too." [CMUDaily]

European Parliament challenges the Commission again about competition in the music market and the SonyBMG merger, as independents’ appeal continues without new action over Sony buy out
"The European Parliament has challenged the European Commission for the third time over SonyBMG. The EC Commissioner for Competition, Neelie Kroes has six weeks to provide a written explanation regarding:

1. Why the Commission did not carry out an in-depth investigation when it adopted its last approval decision?
2. What the Commission's strategy is for making sure that SMEs have market access in concentrated sectors like music?
3. Whether the Commission will adopt new rules or guidelines on how competition policy should be adapted to the specificities of cultural markets such as music?

In the meantime IMPALA will continue its initial appeal regarding SonyBMG. In September the European Commission approved the buy out by Sony of Bertelsmann's shares in the joint venture SonyBMG and IMPALA objected because no remedies were put in place and there was no detailed investigation. As IMPALA is still in litigation over the creation of SonyBMG in the first place, however, it will not launch a new appeal over the buy out. IMPALA's concerns mainly relate to the market power of SonyBMG (and the other majors) rather than who owns it. IMPALA's appeal in the European courts will be heard again by the judges next year. IMPALA also appealed the EC's second approval decision and this case is on hold while the appeal against the first approval is being dealt with." [RecordOftheDay]

Christa Prets MEP on media literacy in a digital world: MEP Christa Prets wants more "digital education"
"We all need to better understand the media we are touched by daily, especially the young, says Austrian Socialist Christa Prets. MEPs backed her report on "media literacy in a digital world" on Tuesday. In an exclusive interview Ms Prets explained to us what media literacy actually is, how we can improve it and how it can be used to teach the young." [Europa]

11/21/08

EU Commission Monitor - 21/11/08

Now Online: "Europeana", Europe's Digital Library
"Europeana, Europe’s multimedia online library opens to the public today. At www.europeana.eu, Internet users around the world can now access more than two million books, maps, recordings, photographs, archival documents, paintings and films from national libraries and cultural institutions of the EU's 27 Member States. Europeana opens up new ways of exploring Europe’s heritage: anyone interested in literature, art, science, politics, history, architecture, music or cinema will have free and fast access to Europe's greatest collections and masterpieces in a single virtual library through a web portal available in all EU languages. But this is just the beginning. In 2010, Europeana will give access to millions of items representing Europe's rich cultural diversity and will have interactive zones such as communities for special interests. Between 2009 and 2011, some €2 million per year of EU funding will be dedicated to this. The Commission also plans to involve the private sector in the further expansion of Europe's digital library. In September 2007, the European Parliament supported, in a resolution voted by an overwhelming majority, the creation of a European digital library." [Europa]

Education, Youth and Culture Council (EYC), Brussels, 20-21 November 2008
"This Memo provides a brief overview, from the Commission's point of view, of the issues that were discussed at the "Education, Youth and Culture" Council on 20-21 November in Brussels." [Europa]

EU competition rules – part of the solution for Europe's economy
"Neelie Kroes, European Commissioner for Competition Policy Speech at European Competition Day, Paris, 18th November 2008." [Europa]

11/3/08

EU Commission: Competition - 03/11/08

EU executive backs film subsidies
"European film-makers likely to continue to enjoy tax breaks and grants through to 2012.
European cinema is set to receive a fresh batch of national funding over the coming years, after the European Commission said it wants to prolong until 2012 rules that allow member states to provide their film industries with tax incentives and grants. The decision to extend the rules beyond their current expiry date in 2009 is not yet final and may be affected by the findings of a five-week public consultation period, which runs through to 30 November. However, in statements made on 24 October, Neelie Kroes, the European commissioner for competition, and her colleague responsible for media, Viviane Reding, made clear that they believe film should continue to be exempted from some rules on state aid." [EuropeanVoice]

10/24/08

EU Commission: Competition - 24/10/08

Mergers: Commission revises Remedies Notice and amends Merger Implementing Regulation
"The European Commission has revised its guidelines on remedies in merger control in order to ensure that competition concerns are dealt with more effectively and to clarify to companies involved in merger cases how best to address competition concerns. Remedies are modifications to a proposed transaction suggested by the parties involved with a view to eliminating possible competition concerns identified by the Commission. The main changes include the introduction of a form for submitting information on remedies, details on divestiture and access remedies and clarifications on the role of the Trustee. The Commission has also modernised the Remedies Notice in the light of the revised Merger Regulation (EC) No. 139/2004 (see MEMO/04/9), the Commission's experience in a large number of cases, the Commission Mergers Remedies Study (see IP/05/1327) and recent judgements of the European Courts. The Remedies Notice also takes into account comments received from the public consultation held in 2007 on a draft Notice (see IP/07/544). In addition, the Commission has adopted amendments to the Merger Implementing Regulation (Commission Regulation (EC) No. 802/2004) in line with the changes to the Remedies Notice." [Europa]

State aid: Commission consults on three year extension of film support criteria
"The European Commission has launched a public consultation on plans to extend the state aid assessment criteria of its Cinema Communication (see IP/01/1326) until 31 December 2012. Under the current criteria, state support for film production can be exempted from the EC Treaty's ban on state aid under certain conditions. In particular, such support must concern cultural films, while respecting certain thresholds regarding territorial requirements and aid intensity. Schemes must also comply with the EC Treaty rules and cannot focus on specific film-making activities. The Commission proposes to extend the validity of these criteria for three years and invites interested parties to submit their comments by 30 November 2008." [Europa]

For more information on the European Commission please click here

10/13/08

EU Commission: Competition - 13/10/08

Neelie Kroes, European Commissioner for Competition Policy, In defence of competition policy, Opening remarks at conference "Competition policy, growth and consumer purchasing power"
Brussels, 13th October 2008
Full speech [Europa]

10/10/08

EU Commission: Competition - 13/10/08

Commissioner Neelie Kroes hosts high-level conference on the benefits to the economy and consumers of competition policy (on 13/10)
The benefits to the economy and consumers of competition policy will be the focus of a high-level conference in Brussels on Monday 13 October hosted by European Commissioner for Competition Neelie Kroes Commissioner Kroes intends to highlight the substantial and proven benefits to consumers of the EU's competition policy, comment on recent problems in financial markets and set out the concrete benefits of the state aid rules (in particular in limiting risks of beggar thy neighbour policies which could aggravate present problems). French Prime Minister François Fillon will address the conference, together with a number of other high-level speakers.
[Europa]

9/26/08

EU Commission: Information and Society 26/09/08

Telecoms Reform: Parliament vote paves way for Single Telecoms Market in Europe 24/09/08
Today the European Parliament in its plenary session voted on the European Commission's proposals of November 2007 to reform the EU Telecom rules, in place since 2003. The EU Telecoms Reform aims to create a Single EU Telecoms Market with improved rights for consumers and businesses by reinforcing competition and investment and boosting the take-up of cross-border services and wireless high-speed broadband for all. [Europa]

Broadband: Commission consults on regulatory strategy to promote high-speed Next Generation Access networks in Europe
The European Commission has launched a public consultation on the regulatory principles to be applied by EU Member States to Next Generation Access broadband networks (NGA). NGA optical fibre-based networks enable bitrates several times higher than those currently available on traditional copper wire networks. NGAs are required to deliver high-definition content (such as high definition television) and interactive applications. The objective of a common regulatory framework for NGA is to foster a consistent treatment of operators in the EU and thereby ensure the necessary regulatory predictability to invest. The Commission is consulting on the basis of a draft Recommendation, addressed to the regulators in the 27 EU Member States and suggesting definitions for harmonized categories of regulated services, access conditions, rates of return and appropriate risk premiums. The public consultation will be open until 14th November 2008. The Commission will then finalise the Recommendation in the light of comments received and formally adopt it in 2009. [Europa]

Realising the potential of Europe's single market in telecoms for consumers and business
Viviane Reding: Member of the European Commission responsible for Information Society and Media
CER breakfast seminar, Brussels, 16 September 2008 [Europa]

Commission consults on how to put Europe into the lead of the transition to Web 3.0
Europe could take the lead in the next generation of the Internet. The European Commission today outlined the main steps that Europe has to take to respond to the next wave of the Information Revolution that will intensify in the coming years due to trends such as social networking, the decisive shift to on-line business services, nomadic services based on GPS and mobile TV and the growth of smart tags. The report shows that Europe is well placed to exploit these trends because of its policies to support open and pro-competitive telecom networks as well as privacy and security. A public consultation has been launched today by the Commission on the policy and private sector responses to these opportunities. The Commission report also unveils a new Broadband Performance Index (BPI) that compares national performance on key measures such as broadband speed, price, competition and coverage. Sweden and the Netherlands top this European broadband league, which complements the more traditional broadband penetration index used so far by telecoms regulators. [Europa]

Social Networking Sites: Commissioner Reding stresses their economic and societal importance for Europe 26/09/08
Viviane Reding, Commissioner for Information Society and Media, will today give a speech on Social Networking. It will be the first public statement of the Commissioner on this subject. The speech will be given at today's Safer Internet Forum that takes place in Luxembourg and focuses on Safer Internet and children this year. Commissioner Reding will underline the importance of self-regulation and will also meet representatives of the social networking companies Myspace and Dailymotion. [Europa]

Putting Europe high on the global map of science and technology: Commission advocates new international strategy
Today, the European Commission called on governments to jointly develop a strategy for international cooperation in science and technology. It proposed a strategic framework for jointly strengthening science and technology cooperation with non-EU countries, notably in the field of Information and Communication Technologies where Europe is a strong exporter. The Commission's objective is to contribute to sustainable development worldwide while at the same time improving Europe’s competitiveness in science and technology. The Commission invites Member States to define together, rather than in isolation, priority research and technology areas where a coherent EU effort would have more impact. [Europa]

Social Networking in Europe: success and challenges
Viviane Reding, Member of the European Commission responsible for Information Society and Media
Safer Internet Forum, Luxembourg, 26 September 2008 [Europa]

9/22/08

EU Commission: Competition - 22/09/08

State aid: Commission consults on draft guidance for state aid enforcement by national courts 22/09/08
The European Commission has launched a public consultation on a set of guidelines to assist Member States' courts in applying the EU state aid rules. The guidelines are aimed at supporting national courts and potential claimants in relation to domestic state aid challenges. In addition, national judges will be able to ask the Commission for information or opinions on the application of the state aid rules. Interested parties are invited to comment on the draft by 23 October 2008. [Europa]

9/9/08

EU Commission: Competition - 09/09/08

General block exemption Regulation (GBER) comes into force 29/08/08
On 29 August 2008, the newly adopted Regulation declaring certain categories of aid compatible with the common market in application of Article 87 and 88 of the Treaty (General block exemption Regulation) comes into force. It allows Member States to grant certain well-defined aid without notifying it to the Commission. The Regulation authorises aid in favour of SMEs, research, innovation, regional development, training, employment and risk capital. It reduces the administrative burden for public authorities, the beneficiaries and the Commission. [Europa]

Block exemption Regulations Published 09/08/08
General Block exemption regulation GBER - 09.08.2008

Regulation: OJ No. L 214 of 09.08.2008 pdf

State aid: Commission approves rescue loan for TV 2 Denmark 04/08/08
The European Commission has authorised, under the EC Treaty’s rules on state aid, a credit facility granted by the Danish Ministry of Culture to support TV 2 Danmark AS. The Commission concluded that the credit facility, which addresses the company's cash flow problems, constitutes rescue aid in line with the EU rules on state aid to companies in difficulty (see MEMO/04/172). In due time, the Commission will review whether the credit is fully reimbursed or whether appropriate restructuring measures to restore the long term viability of TV 2 Danmark AS are taken.
[Europa]

8/29/08

Music News Bulletin - 29/08/08

Now Hollywood is chasing UK downloaders: And getting the wrong guy 29/08/08
"Tiscali threatened to disconnect a customer for illegally downloading a TV show last week, after receiving a copyright infringement notice from a Hollywood studio. The only problem was the customer had quit the ISP months before the alleged transgression was made." [TheRegister]

Pandora prepares to join titsup.com club: Web radio outfit struggling to cover royalties 18/08/08
"This weekend saw a cry for help from personalised web radio outfit Pandora. It blubbed that music industry royalties are too high for it to survive on meagre web 2.0 advertising revenues. In a Washington Post confessional, the firm's founder and CEO Tim Westergren said: "We're approaching a pull-the-plug kind of decision. This is like a last stand for webcasting."" [TheRegister]

World shocked (shocked!) by Legal P2P: Old news sinks in 13/08/09
"Why does the idea of legal P2P - something music fans have been clamouring for since the original Napster - still cause so much confusion? Britain is set to be the first country outside Korea where punters will be offered such services (as we revealed back in June), but the idea still seems too incredible for many journalists and bloggers to comprehend." [TheRegister]

EU Gives Green Light to Sony's Acquisition of BMG 16/08/09
"Yesterday the European Union approved Sony Music's acquisition of Bertelsmann's half of its Sony BMG joint venture. Last month Sony agreed to purchase BMG from Bertelsmann for around $900 million. The need for regulators' approval is a standard procedure and an especially potent topic in a recorded music market with such concentrated ownership. The EU approval effectively ends an appeal by indie trade group Impala that asked the EU to rescind its original approval of the merger. As I wrote last year, indie label sales in the US -- either because of or in spite of the merger -- fared well since the merger. From the time of the merger through October of 2007, a period of just over three years, Sony BMG's share of US album sales dropped to 21.76% from 29.78%. Indies rose to 20.55% from 17.58%." [Coolfer]

Another Case Against Long Tail Economics 15/08/09
"At Harvard Business School's Working Knowledge, John A. Quelch has a post titled "Long-Tail Economics? Give Me Blockbusters!" Quelch is the Lincoln Filene Professor of Business Administration at Harvard Business School. Quelch explains the benefits and lures of blockbusters and offers five characteristics that define a blockbuster. His bottom line is this:
More risky than pursuing blockbusters is not to pursue them, to condemn your enterprise to a lifetime of slave labor harvesting the long tail of micro-opportunities rather than imagining, pursuing, and marketing the global solution to an important, widely shared problem." [Coolfer]

8/12/08

EU Commission: Competition - 12/08/08

The European Commission’s Reexamination of the SonyBMG Merger: A Precedent-Setting Attempt to Jump the Fence August 11, 2008
ABSTRACT: On July 13, 2006, the European Court of First Instance annulled the European Commission’s decision authorizing the creation of Sony BMG, a joint venture incorporating the worldwide recorded music businesses of Sony and Bertelsmann. In its 2004 clearance decision, the Commission had concluded that the merger would not create or strengthen a collective dominance position on the part of the majors (i.e., Universal, Sony BMG, Warner, and EMI). In Impala v. Commission, however, the CFI harshly criticized the decision because it found that the evidence relied on by the Commission was not capable of substantiating this conclusion. [LawProfessors]

Impala vs. Commission... and the alleged 'blow' for the Commission 12/08/06
It took me a while to go through the IMPALA vs. Commission judgment. Everyone knows the story: the CFI quashed down the Commission's clearance of the JV between Sony and Bertelsmann. The Commission, after having raised serious objections against the transaction (on the grounds that there was arguably tacit collusion on the market prior to the merger, and that this situation would be further strengthened following completion of the transaction) made a surprising U-turn and cleared the deal without further objections. [ProfessorGeradin]

The Commission's Non Contractual Liability in the Field of Merger Control - Don't Use a Hammer When You Need a Screwdriver 01/07/07
It has become conventional wisdom to view the rulings handed down by the CFI in Airtours, Schneider, Tetra Laval and Impala as unprecedented setbacks for the European Commission ("the Commission") that would usher in a new era of administrative accountability in the field of merger control. However, several commentators still consider that the Commission regretfully enjoys a de facto power of "life or death" over notified mergers, and that judgments striking down its decisions are unlikely to change much in practice. Parties to a blocked merger generally abandon their projects following the Commission's decision, irrespective of the outcome of the actions they may subsequently bring before the EC Courts (e.g. the Airtours/First Choice or Schneider/Legrand mergers). Third parties - competitors or consumers - to an illegally approved merger have little prospect of inducing the Commission to unscramble a consummated transaction (e.g. the Sony/BMG merger).

Commission again clears music giants' merger 3 October 2007
The European Commission has cleared, for a second time and without imposing any 'remedies', the joint venture between music companies Sony and BMG, which had been set aside by the European Court of Justice in 2006. [Euractiv]

7/28/08

EU Commission: Competition - 28/07/08

Rebalancing EC Merger Control: The ECJ’s Judgment in Case C-413/06 P (Bertelsmann and Sony) July 28th, 2008
"On July 10, 2008, the European Court of Justice overturned the European Court of First Instance’s Impala judgment, which had previously quashed the European Commission’s clearance decision of the Sony/BMG merger. Even though the ECJ judgment contains no groundbreaking novelties, it brings some important clarifications with regard to a number of procedural and substantive issues of EC merger control law.

The judgment is of particular interest because the ECJ commented for the first time on the CFI's Airtours criteria for the establishment of collective dominance. With regard to procedural issues, the ECJ largely restores the pre-Impala situation and reduces the uncertainty and imbalance caused by the CFI’s judgment as to the importance of the statement of objections (“SO”), the conduct of merger control proceedings before and after the adoption of a SO, and the standard of proof and of adequate reasoning that the Commission has to respect when drafting merger control decisions." [GlobalCompetitionPolicy]

The European Commission’s Reexamination of the SonyBMG Merger: A Precedent-Setting Attempt to Jump the Fence July 22nd, 2008
"On July 13, 2006, the European Court of First Instance annulled the European Commission’s decision authorizing the creation of Sony BMG, a joint venture incorporating the worldwide recorded music businesses of Sony and Bertelsmann. In its 2004 clearance decision, the Commission had concluded that the merger would not create or strengthen a collective dominance position on the part of the majors (i.e., Universal, Sony BMG, Warner, and EMI). In Impala v. Commission, however, the CFI harshly criticized the decision because it found that the evidence relied on by the Commission was not capable of substantiating this conclusion.

Notwithstanding the fact that the European Court of Justice has now set aside Impala because of a number of identified errors of law, the judgment continues to raise fundamental questions about the standard of proof incumbent on the Commission when dealing with merger cases. The 2004 Sony/BMG decision indeed should be seen in light of the CFI’s consecutive annulment of three prohibition decisions in 2002: Airtours v. Commission, Schneider Electric v. Commission, and Tetra Laval v. Commission. The resoluteness by which the CFI criticized the Commission for its analysis of the evidence and questioned the rigor of its decisions in these judgments was unprecedented. The three judgments, which were delivered over a five-month period, gave rise to a flood of criticism of the Commission’s merger analysis and opened a debate about the economic soundness of its decisions." [GlobalCompetitionPolicy]

Bertelsmann and Sony Judgment: Welcome Clarity for EC Merger Review from the EU’s Highest Court July 28th, 2008
"On July 10, 2008, the European Court of Justice gave judgment setting aside a ruling of the European Court of First Instance in an appeal brought by Impala, a third-party complainant, against the clearance of the SonyBMG joint venture by the European Commission in August 2004. The CFI’s judgment was the first (and so far, the only) time the CFI had overturned an unconditional merger clearance decision under the EC Merger Regulation.

As the ECJ Advocate General noted, the appeal presented the EU’s highest court with an opportunity to develop its case law in the field of merger control, in particular with regard to the extent of investigation and reasoning required of the Commission when it approves a merger transaction. Merger cases are only rarely considered by the ECJ and this judgment, which was delivered by a Grand Chamber of 13 judges, has emphasized a number of important procedural safeguards for parties to mergers, which had been called into question by the CFI’s earlier ruling." [GlobalCompetitionPolicy]

The Court of Justice sets aside the Judgment of the Court of First Instance relating to the Sony BMG Joint Venture July 10th, 2008
"The Court of First Instance committed errors of law in concluding that the Commission’s decision approving the joint venture was vitiated by manifest errors of assessment and was inadequately reasoned.

The following is an excerpt of the ECJ's judgment. To read the entire judgment on the ECJ's website, click on the URL link in the column on the left.

On 19 July 2004, the Commission approved the concentration of the global recorded music businesses of Bertelsmann AG and Sony (with the exception of Sony’s activities in Japan) into three newly-created companies to be operated under the name Sony BMG." [GlobalCompetitionPolicy]

IES Working Paper 4/2008
"One of the most important developments in EC competition policy during 2006 was the Court of First Instance’s (CFI) Impala v. Commission judgment annulling the European Commission’s approval of the merger between the music units of Sony and Bertelsmann. It harshly criticized the Commission’s Decision because it found that the evidence relied on was not capable of substantiating the conclusion. This was the first time that a merger decision was annulled for not meeting the requisite legal standard for authorizing the merger. Consequently, the CFI raised fundamental questions about the standard of proof incumbent on the Commission in its merger review procedures. On July 10, 2008, the European Court of Justice overturned Impala, yet it did not resolve the fundamental question underlying the judicial review of the Sony BMG Decision; does the Commission have the necessary resources and expertise to meet the Community Court’s standard of proof? This paper addresses the wider implications of the Sony BMG saga for the Commission’s future handling of complex merger investigations. It argues that the Commission may have set itself an impossible precedent in the second approval of the merger. While the Commission has made a substantial attempt to meet the high standard of proof imposed by the Community Courts, it is doubtful that it will be able to jump the fence again in a similar fashion under normal procedural circumstances." [IES]

6/30/08

EU Commission: Competition - 30/06/08

Impala appeals Sony BMG decision: Says European Commission made errors
“ European independent music companies trade association Impala has launched another appeal with the European Commission contesting regulators' clearance of the Sony BMG merger. Brussels-based Impala said Monday that it lodged an appeal on Friday with the EC's Court of First Instance in Luxembourg, in which it challenges the EC's unconditional authorization of the recorded music joint-venture.” [AdamArgitWagner]

3/9/08

EU Commission: Competition - 03/09/08

Study on the entrepreneurial dimension of cultural and creative industries 03/09/08
The aim of the study is to better understand the workings and specific needs of enterprises, particularly SMEs, in cultural and creative industries. The study must focus on environmental factors, especially regulatory, that influence the development of these enterprises, and also on the issue of access to funding and entry barriers. Particular attention must be given to research and development. [Europa]