Indie labels lobby parliament to try and block EMI sale

Indie labels lobby parliament to try and block EMI sale

It highlights the achievements of independents, including the astonishing global success of Adele, in what is "an already distorted market", and then continues: "But market distortion must not be allowed to become even greater. If the sale of EMI is allowed to go through, the combined market share in the recorded music market would be around 50% - 10% more than the threshold at which the OFT should be involved.

"The increasing concentration of the music market in the hands of a decreasing number of gigantic multinationals has undoubtedly damaged competition. The proposed sale of EMI threatens further damage so great that it must be reviewed and resisted by the UK Coalition Government with the full support of the Opposition.

"The move will will undoubtedly concentrate the global music market still further into the hands of two dominant major companies - Universal and Sony. That itself is enough to demand that the UK Government looks closely at and opposes the proposed sale of the only UK major music company to the remaining gigantic multinational, whose monopolistic position has already been a cause of market decline."

It also expresses sympathy with Warner Music which, it says "will effectively be relegated in size to a position where it can offer no real competition, and the global music market will be in the control of just two huge companies - one French and one Japanese".

The letter goes on to quote what Beggars Group chairman Martin Mills told Music Week at the time the takeover was announced, calling it "breathtaking arrogance" and "bad news for almost everyone involved in the art and business of music".

It concludes: "I strongly urge you to raise this issue in Parliament and with the Secretary of State for Business, Innovation and Skills. We are asking that that the likely effects of these proposed sales on competition, retail, consumer choice and the growth of monopolistic power in the music industry are fully examined, and the proper outcome for the benefit of the industry as awhole and the industry in the UK in particular is achieved. That outcome, we strongly believe, cannot include this break-up and sale of EMI as proposed."


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