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Home >> Life
UPDATED: 10:04, September 23, 2005
Sony, BMG merger challenged by European small music companies
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Independent music companies from across Europe on Thursday made a joint lawsuit to challenge the European Commission's decision allowing the merger of music publishing giants BMG and Sony.

Impala, the organization that represents more than 2,500 independent record companies, music publishers and national industry associations, believes that the Commission, the European Union (EU)'s executive arm, was wrong to wave through the merger unchecked.

The Impala also hopes that a successful outcome in the case will encourage other small and medium-sized companies to take on the Commission if they believe it has failed in its duty to protect competition.

The Commission gave an unconditional green light for the merger between music giants Sony and Bertelsmann Music Group (BMG) on July 19, 2004.

The deal, which was approved without conditions or remedies, will create the second-largest music company in the world.

The small companies argued that the Commission's ruling did not take into account the impact on European culture and diversity of the merger between the giants from Japan and Germany.

Some 80 percent of the global music market is now controlled by four major companies (Sony-BMG, Vivendi Universal, EMI and Warner Music), according to the Impala.

The European Court of Justice's final judgement is expected in three to six months.

Source: Xinhua


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