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]

Press Reaction to MySpace Music's Equity Deal - 22/09/08

MySpace Music hears the antitrust song: Indies call foul at exclusion 18/09/08
"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]