Impala Appeals EU Clearance Of Sony, BMG Merger -- Again
June 16, 2008 at 5:13 AM (PT)
IMPALA said it has appealed for the second time the EUROPEAN COMMISSION's unconditional clearance of SONY CORP. and BERTELSMANN's merger of their recorded music units, reports THOMPSON FINANCIAL. The INDEPENDENT MUSIC PUBLISHERS AND LABELS ASSOCIATION, representing 4,000 independent labels, said it filed the appeal at the EUROPEAN UNION's second-highest court, the Court of First Instance.
In JULY 2006, the CFI overturned the commission's clearance of the 50-50 joint venture in JULY 2004, following an appeal lodged by IMPALA. The companies re-notified the merger to the EU executive following the block.
At the beginning of OCTOBER last year, the commission for the second time cleared the merger without conditions.
IMPALA said on MONDAY that it "believes the commission repeated many of the errors that it made before, despite the court's judgement in IMPALA's favor in 2006. As the music sector is highly concentrated, IMPALA's position is that music mergers should not be allowed unless far reaching remedies are put in place to protect market access and promote market recovery."