Brussels, 28/07/2006 (Agence Europe) - Delighted with the recent decision by the European Court of First Instance to oppose Sony's plan to merge with BMG in the music business, the non-profit association of artists and indie record companies, Impala, says it will act as a break on other music industry giants that are looking at merger deals. The Court of First Instance ruling has thrown cold water on EMI's plans to merge with Warner, which have raised similar concerns to Sony's plan to merge with BMG of Germany. EMI is the world's third largest record company, and Warner is the fourth largest. They have put their merger plans on hold for the moment. In a press release, EMI said on Thursday that its management board had decided not to continue seeking merger agreement with Warner Music. The news was immediately welcomed by Patrick Zelnik, President of Impala: 'We believe it sets the example. We all need to work together - the Commission, the majors and the independents - and seize the opportunity to rebuild a competitive, innovative and cultural Europe.'
Impala (Independent Music Publishers and Labels Association) appealed to the European court for the annulment of the European Commission's 18 July 2004 decision authorising the merger of Sony with BMG, and the Court of First Instance found in Impala's favour (see EUROPE 9232). The judges said the Commission had demonstrated neither the lack of any dominant position on the market before the deal nor the lack of a danger of establishing a dominant position as a result of the deal. Impala believes the Court of First Instance ruling will protect the interests of cultural diversity in the EU and the world since the planned merger of the two giants would have led to various bands and artists being dropped.