EU Regulators Probe UMG Acquisition Of EMI
February 28, 2012 at 4:06 AM (PT)
In hearings before EUROPEAN UNION regulators, rivals and customers of UNIVERSAL MUSIC GROUP were asked whether UMG's acquisition of EMI GROUP's recorded music business would allow it to increase prices, reports BLOOMBERG.
"Regulators in BRUSSELS asked whether APPLE's iTUNES, the largest online music store, and others could prevent record labels from coordinating prices, according to a document seen by BLOOMBERG NEWS. Regulators also asked whether online music retailers could succeed without songs from EMI, including THE BEATLES and AMY WINEHOUSE, and UNIVERSAL, which represents LADY GAGA and RIHANNA."
The EU regulators asked, "Please explain whether, in your view, after the acquisition of EMI, UNIVERSAL would have the ability to raise the price for its recorded music -- for music bought online or offline."
"These questionnaires are a normal part of the process and we are comfortable that we can satisfy any concerns that might be raised," UMG said in a statement.