Brussels, 05/04/2007 (Agence Europe) - The measures proposed by Universal as part of its proposed takeover bid for the musical publishing business of Bertelsmann, BMG Music Publishing (BMG), has not yet received the go-ahead from the Independent Music Companies Association (IMPALA).
IMPALA, which has already spoken out to the European Commission (EUROPE 9315) against this merger, considers that Universal's proposed divestment of Zomba Music, Rondor Music, 19 Music, 19 Songs and BBC Music Publishing will not be enough to meet the objective of keeping market competition free from restrictions. IMPALA has also requested a commitment on the future behaviour of companies, as well as the online market, a market on which the new company setup would become number one in the world.
At the request of IMPALA, the Court of First Instance cancelled the approval given by the Commission to the Sony/BMG merger. IMPALA was requested by the Commission to make an initial impact study of possible mergers between the so-called “major” record companies on the music market. If Universal does not provide financial information about the proposed divestments demanded by the association (as Warner had done in an effort to please IMPALA in February, EUROPE 9372), it is difficult to imagine IMPALA, which has the ear of the Commission, giving its blessing to this union. (cd)