Indies Vexed About EMI Disposals

Europe’s independent music companies are miffed about the possibility of Parlophone being sold to a partnership between Sony and BMG.

Although BMG has already snapped up Mute Records, Impala – the indie music companies’ organization – is concerned about Sony getting a piece of the action, claiming the European recorded music business could become dominated by two majors.

“Our position from the start has always been that music must not be allowed to become ‘a two-horse race’ and making sure the independents can compete effectively is crucial,” said Impala executive chair Helen Smith. “All interested parties should be treated equally as bidders of any assets to be sold off. Properly strengthening the independents should be part of the outcome.”

Universal and Sony were allowed to buy EMI on the bias that the divestments they make would compensate for the reduction in competing in an adequate way.

Strict rules apply to make sure this happens. The purchaser must have no connections to the seller, the seller must not benefit from the divestments or re-acquire any market influence over the assets. and the divestments must not raise any competition concerns.

The European competition regulators may be concerned that Sony, which bought EMI’s publishing business, is also bidding for some of its recorded music business assets.