IMPALA slams EU’s decision to clear Sony’s buyout of Sony/ATV

PRESS RELEASE:

Yesterday the European Commission has decided to clear Sony’s buyout of the late Michael Jackson estate’s shares in Sony/ATV.

This decision follows a preliminary investigation during which the Commission examined the views of customers and competitors.

IMPALA and others raised concerns that the transaction would reinforce the market power of the world’s biggest music publisher, creating serious competition problems, including for online platforms and consumers.

Despite this, the EU hasfound that the transactionwouldn’tchange the current situation materially. Thisoften happens in cases involving a change of ownership, which typicallycome under less scrutiny than other transactions.

Market participants had argued that this buyout is not a simplechange joint to sole control transaction. IMPALA described the buyout as “transformative” and urged the Commission toopen a detailed Phase 2 investigation and/or impose tough remedies.

Helen Smith, Executive Chair of IMPALA, commented, “This decision is clearly wrong. It goes against the EU’s previous analysis of concentration in music, as well as the concerns raised during this market investigation.We will need to read the decision in full when published tounderstand properly why the Commission has allowed this transaction to go ahead – there is a fundamental flaw somewhere.”

About IMPALA
IMPALA was established in April 2000 to represent independent music companies. 99% of Europe’s music companies are SMEs. Known as the “independents”, they are world leaders in terms of innovation and discovering new music and artists – they produce more than 80% of all new releases and account for 80% of the sector’s jobs (for more information, see the features of independents). IMPALA’s mission is to grow the independent music sector, return more value to artists, promote cultural diversity and entrepreneurship, improve political access and modernise perceptions of the music sector.