Late & Fresh News: Universal Buy BMG, Pending EU Approval

You all know Universal Group, you simply can't say you don't, at least from the beginning of motion pictures. Well, they're in music too, you know? And they're way big! As a matter of fact, Universal Music Group is one of the "4 major" who are responsible for RIAA and the crap RIAA is spreading around with their every move.

Now, Universal have bought BMG, German Bertelsman's music division for a handsome $2.2 billion. Seems much, doesn't it? Yet think that BMG is one of the most wanted music groups around and Sony also wanted to buy it but failed to get on with the plans as the EU Commission has detected some nasty things around and started investigating the merger.

Even more, as Sony has failed to provide with sufficient requested data for the EU officials, the Commission has simply halted all related work and things came to a halt themselves.

Now, things are running somehow differently with Universal and BMG as the money has been long time paid; still the EU Commission is making investigations regarding the results of such a commercial move and the impact it may have on the European music market and on the European consumer as well.

Universal merging with BGM will result in overwhelming EMI and posing an even more serious threat to Warner. IMPALA, a European organization made of about 3,500 independent labels and producers are looking closely to every aspect of this new move as excessive strength from one or few groups isn't a good thing at all.

Martin Mills, chairman of IMPALA, openly declared: "One of our main concerns is the ability of the majors to leverage excessive market strength in recording and publishing as well as the crucial online marke." (via Bloomberg)

Even if the US has already ratified the merger right from 14th November 2006, the final words belong to the EU and only then will things be better and clearer visible. Anyway the stir on the music market grows as last week Universal has also made some interesting steps towards DRM-free digital music sales after EMI went iTunes, Yahoo Music went Sansa and so on...