Posted: Mon., Jun. 16, 2008, 12:24pm PT

Impala challenges EC decision

Org lodges appeal against Sony-BMG merger

European independent record labels trade body Impala has lodged a second appeal challenging the European Commission's unconditional authorization of Sony's merger with BMG.

Monday's appeal, submitted at the Court of First Instance in Luxembourg, follows just days after BMG parent group Bertelsmann revealed that it planned an early exit from the merged operation.

Bertelsmann is reportedly negotiating to hold onto its publishing catalog and recorded music business in Germany while selling all other assets.

In a statement, Impala said it believes the EC repeated many of the errors that it made when it first gave the green light for the deal. The court upheld Impala's initial appeal in 2006, forcing the EC to re-examine the SonyBMG merger, but once again Europe's competition authority gave its unconditional backing to the partnership.

However, Impala maintains that music mergers should not be allowed unless far reaching remedies are put in place to protect market access and promote market recovery.

The independents want the EC to adopt a series of market access measures, including new competition rules, to recognize the specifics of culture and the role of economic diversity in music.


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