By Simon Zekaria - 3rd May 2004
Brussels is expecting new information on the Sony/BMG Bertelsmann merger by Friday and dismissed claims the EU watchdog would eventually clear the deal as “premature”.
"We are expecting to receive the documents this week," said a spokeswoman for EU competition commissioner Mario Monti on Tuesday – who also indicated the papers could arrive as early as Wednesday.
The EU executive set this week’s deadline after stopping the clock on the inquiry on April 13 pending new information from the two companies on the distribution of music recording and intellectual property rights.
Regulators can temporarily suspend merger control probes if they feel new data must be submitted in order to process a full analysis of tie-ups.
Whilst the request focuses on the recorded music industry, the entire investigation also covers competition concerns into markets for electronic appliances such as televisions and portable music players.
The spokesman added that an FT Europe report claiming the commission would eventually clear the deal with concessions from the parties by July this year was both “speculative” and “premature”.
EU regulators on February 12 announced their in-depth four-month probe into the merger.
Japan’s Sony Music and Germany’s BMG Bertelsmann in November 2003 announced plans to structure a business with operating sales totalling €5.3 billion a year.
The merger between the two music giants, if approved, would create the globe’s second largest music company behind Universal.
In 2002, Sony garnered 14.1 per cent of the worldwide market share with EMI and Warner trailing at 12 and 11.9 per cent respectively and BMG at 11.1 per cent.
Market leader is Universal Music with a 25.9 per cent share.
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