Hollywood Reporter.com Nov. 4, 2004
Nov. 04, 2004

Small record labels to appeal Sony-BMG merger in EU

BRUSSELS, Belgium -- Impala, a group representing 2,000 smaller record labels, said Wednesday it would ask the European Union's high court to overturn a decision by EU regulators approving the merger between the music units of Japan's Sony Corp. and Germany's Bertelsmann AG. The group contends the deal, which creates the world's second largest music company, would unfairly concentrate power in the hands of a few companies. "We have taken this unprecedented step for what we believe to be the long term health of the entire music industry and all its stakeholders," said Alison Wenham, vice president of Impala and chief executive of the Association of Independent Music, a British group representing 800 independents. "The threat of a duopoly operating in the business without any real constraints is too great for any serious company or sector to ignore."