Brussels, 03/11/2004 (Agence Europe) - The association of independent artists and music producers (Impala) has decided to appeal to the Court of Justice further to the European Commission's decision to authorise a merger between Sony and BMG unconditionally. Although it noted a relatively close parallelism between the prices of CDs marketed by the 5 majors, the Commission had to admit that it did not have sufficient evidence to oppose the operation or to call for additional conditions from the parties. In its decision of last July (see EUROPE of 21 July), it failed to characterise the risk of a collective dominant position resulting from a move to just 4 majors (Universal, Warner, EMI and Sony-BMG), which would hold 80% of the record market in Europe. No other opponent of the merger has joined the Impala action.
Yesterday, after consultation with members at national level, the independents renewed their arguments to justify this new stage, underlining that this merger would harm the emergence of new artists and musical creativity, and consumers. Having received notification of the Commission's decision on 23 September, the associations considered that the merger would worsen difficulties for small and medium-sized enterprises, and would go against competition in the sector. Impala President Michel Lambot said that it was a question of "protecting cultural diversity in Europe and the world, at a time when globalisation means Hollywood". If there has never been this kind of outcry before, "this is an historical moment for the music industry", he added, saying that he was "impressed by the scale of the sentiment within the sector, which is saying: too much". A Commission spokesperson pointed out that at the time "we examined the case with great attention and reached the conclusion that the 4 majors would continue to compete". She added: "We will wait for the appeal, when it is introduced, and will explain our decision to the Court". The association, which still has a couple of weeks to table its appeal and possibly to ask the Court to look at it under the accelerated procedure, announced that its has set up a fund to cover its legal costs, which will remain open to any third parties wishing to join in. The European Consumers' Association (BEUC), which also opposes the merger, does not intend to follow suit. "Our starting position is different, due to access to market information which we do not have and the fact that our concerns focused on the vertical integration which will result from the merger", said the BEUC economic adviser, adding: "We will not be going to court (…), but this does not mean that we are happy with the Commission's decision".