1/5/09
EU Parliament Monitor - 05/01/09
"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.
Independent labels trade body Impala is also continuing its campaign against the merger and its appeal will be heard in Europe next year. Impala objected to the buy-out of Bertelsmann's stake by Sony BMG, which was approved by the European Commission in September. However, Impala will not launch a new appeal over the buy-out, preferring to focus on the original merger ruling in response to the indies' concerns about market concentration. Sony BMG declined to comment." [Billboard]
Round-up of December Strasbourg sitting
"In a hectic year-end session, MEPs demanded an end to national opt-outs to the 48-hour working week and backed measures to cut Europe's CO2 emissions by 2020. Also during the final sitting of the year, the parliament awarded the 20th Sakharov Prize for human rights to Chinese dissident Hu Jia in absentia.
French President Nicolas Sarkozy defended France's record during its 6-month presidency of the European Union (see article about Tuesday’s meeting – not very detailed) . MEPs mainly gave Mr Sarkozy a positive response for his handling of new EU climate change legislation and the crisis in Georgia." [Europa]
EU Commission - 05/01/09
"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.
"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.
"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
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)
12/19/08
EU Parliament Monitor - 19/12/08
"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]
11/3/08
EU Public Affairs Monitor - 03/11/08
"The French Senate has overwhelmingly voted in favour of a law that would cut off access to the internet to web surfers who repeatedly download copyrighted music, films or video games without paying.
Under the so-called three strikes or "graduated response" legislation - which still needs approval by the lower house before it becomes French law - illegal downloaders are first sent an email warning them of their infraction. They are subsequently sent a warning letter in the post. French senators want to force web surfers to use legal download services such as iTunes rather than pirate copyrighted content." [EUObserver]
French minister promises action
"Christine Albanel, French Minister of Culture and Communication, has told European indie group Impala that the French government will almost immediately debate a Creation and Internet law proposal to examine how to deal with online piracy.
Albanel told the group, “Of course, there is no secret plan to impose the French anti-piracy plan to the rest of Europe. I simply wish that our experience will prove an inspiration for other European states whose cultural businesses are as threatened as the French ones.” [MusicWeek]
Six Caribbean societies are working together to invigorate their countries’ creativity by stabilising Caribbean music’s place in the global economy
"When the Caribbean Copyright Link (CCL) was incorporated in August 2000, the CCL office consisted of a desk at COTT’s headquarters in Trinidad and one full-time employee. Alone, he managed a common back office for the 4 copyright societies that founded CCL—COSCAP (Barbados), COTT (Trinidad and Tobago), HMS (St Lucia) and JACAP (Jamaica)." [CISAC]
Italian fiscal police prosecute 46 for serious uploading
"Italian fiscal police have prosecuted 46 people for uploading large amounts of copyright infringing music onto the internet. Operation ‘Music Box’ was undertaken by the Guardia di Finanza of Venice, with the assistance of local industry anti-piracy group FPM." [IFPI]
9/22/08
Press Reaction to MySpace Music's Equity Deal - 22/09/08
"News Corporation and the major record labels are facing antitrust questions about the blockbuster MySpace Music venture - even before the site has launched.
MySpace Music is billed as the biggest music retail launch of the year. It's a one-stop shop backed by the cross-media muscle of Rupert Murdoch's media empire, with the three biggest record labels. The site promises to offer everything from downloads to ringtones to concert tickets, backed by the "street" cred of the MySpace brand, and a blockbuster launch is expected this week. Astronomical valuations - $2bn - have already been placed on the service, which MySpace insiders want to become the 'internet's MTV'.
The problem? Not everyone can play. Independents say they're being frozen out of the new venture. No independent music company has inked a deal with the News Corp, and independent labels report that they've been blocked from uploading their music. And since MySpace Music is a joint equity venture between News Corp and the three biggest labels, which control 70 per cent of the US recorded music business, the trouble might only be starting." [TheRegister]
MySpace Music Already Faces Legal Challenge 19/09/08
"MySpace Music hasn't even launched yet, but already it is facing anti-trust allegations from independent record labels. MySpace Music has the backing of its parent company, News Corp., as well as three of the four major labels, and the joint venture is being billed as the biggest music retail launch of the year. Together, the three major labels involved - Warner Music Group, Universal Music Group and Sony BMG - account for 70 percent of the U.S. recorded music business. Meanwhile, smaller independent labels feel that they are being frozen out of selling their music on the site, which expects to become the MTV of the Internet. This has the indies crying foul." [FMQB]
MySpace Music Screws Over Indie Labels 9/22/2008
"As News Corp. readies the “internet’s MTV,” MySpace Music, legal troubles are looming even before the site has got off the ground. Indie labels have risen antitrust allegations against the company because its new one-stop music mega-site is allegedly locking out independents and blocking them from uploading their music to the new MySpace venture." [Exclaim]
MySpace Music Faces Threats Of Antitrust Suits From Indie Labels Before Its Launch: Indies claim they're being blocked from uploading music to the site. Sep 19 2008
"The very online service that has been such a boon for independent music artists is now facing criticism for allegedly freezing those same artists out of the picture with its new music venture. MySpace Music is drawing fire for its deal with major labels and threats of a possible antitrust action that could scuttle the venture before it even opens shop, according to a report in the British tech journal The Register." [MTV]
Indie labels may sue MySpace Music for anti-trust September 22
MySpace Music is reportedly set to launch sometime this week, but the new partnership between MySpace and the major labels may already be facing legal action from indie labels that say they are being excluded from the deal. [Prefixmag]
MySpace Music Responds To Indie Criticism 23/09/08
"Responding to reports that MySpace may be the subject of antitrust lawsuits because of an equity stake shared by three of the four major labels, as well as, growing criticism of its treatment of indie labels, a MySpace Music spokesperson gave Hypebot this statement:
“We are not aware of any antitrust complaint or inquiry pending against either MySpace or MySpace Music. MySpace Music welcomes indie artists and is not blocking content from them or other labels. Our goal is to provide the indie community with powerful tools and monetization channels to enable them to access revenue streams previously unavailable.”"
[Hypebot]
Is An Antitrust Lawsuit In MySpace Music's Future? 22/09/08
"Myspace's MySpace music is now scheduled to launch this week, but an antitrust lawsuit may be in the making as indie labels in the EU and US complain they are being excluded.Some speculate that the launch has been delayed because of ongoing negotiations with EMI. Others believe it has been more about tech issues. This is an important launch both for MySpace who wants to cement its relationship with consumers in the face of growing competition and the music industry who needsEu_flag to finds ways to monetize music particularly with MySpace's young audience." [Hypebot]
Indie Music Bigwig: MySpace Music Is Playing Nice With Us September 23
"Last week we heard some vague grumbling from small record labels -- primarily those based in Europe, it seems -- who were angry with MySpace because they didn't yet have access to MySpace Music, the soon-to-launch joint venture between News Corp. and three of the four major labels. And here in the U.S., indie heavyweight IODA, which digitally distributes 1.5 million tracks for several thousand labels, doesn't have a deal with the JV, either." [AlleyInsider]
Indie Labels Bite The Hand That Used To Feed Them: MySpace Music
"MySpace Music, the JV between News Corp. and three of the four big music labels (no EMI, yet) that should be launching any day now, is already drawing the ire of the indie music community. Their gripe? They say they can’t get their music uploaded onto the site, British site The Register reports." [AlleyInsider]
8/29/08
Music News Bulletin - 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
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]
7/30/08
EU Public Affairs Monitor - 30/07/08
Bertelsmania comes to
"They don't come much longer and more complex than Case C-413/06 P Bertelsmann and Sony Corporation of America v Impala, yesterday's decision of the Court of Justice of the European Communities in a case that, while not actually being an IP case, says a lot about how the ECJ views the concentration of IP rights -- even weak ones like copyrights.
"The Registry reports that Members of the European Parlioament (MEPs) may have accidentally included measures forcing ISPs to cut off internet access for those who infringe copyright through dowloading. The test calls for "cooperation" between ISPs and those "interested in the protection and promotion of lawful content". The trouble is, no one quite knows what "cooperation" means, including
International Confederation Condemns
"CIAGP is the visual arts division of CISAC. CIAGP collectively acts for over 100,000 artists, photographers and illustrators through artists rights societies in 31 countries. CISAC works towards increased recognition and protection of creators' rights. Founded in 1926, CISAC is a non-profit organization headquartered in
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)
"On
"On
"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
6/30/08
EU Commission: Competition - 30/06/08
Impala appeals Sony BMG decision:
“ European independent music companies trade association Impala has launched another appeal with the European Commission contesting regulators' clearance of the Sony BMG merger.