Sony-BMG Under The Magnifying Glass. Again.

I guess there are few people interested in the music business that don't know who Sony-BMG is. For those who still don't know it, I'll just say that Sony BMG is one of the four major records companies (while the other three are Warner, EMI and Universal) and representatives of these 4 act together under the name of Recording Industry Association of America, better known and badly spoken of as RIAA.

Now that I have mentioned RIAA I just know that foreheads will all of a sudden start to wrinkle and eyes frown – yes, nobody likes RIAA (I am not even sure that they love themselves). Well, after Sony getting a fine for the rootkit-affair and Europe and EU taking on Apple, Steve Jobs and iTunes at once, here comes another thing: EU officials, others than Mrs. Kuneva, have started an investigation upon the lawfulness and deep aspects of Sony Merging with BMG and their business in Europe.

Behind all this fuss is no other than the antitrust law, one piece of legal specs which Europe starts to like more and more; nothing new for us Europeans as the EU's preoccupation for justice is well known, at least known as good as the lack of tolerance for too much of a corporatist behavior.

The European Commission investigating antitrust matters after the 2004 merging between Sony and Bertelsmann AG has come to a stand still now because the new entity, Sony-BMG failed to provide with the requested data. The biggest concern of the European Commission is that of a joint monopoly being born and acting in the detriment of the European music consumers.

Given other monopoly and antitrust situations that have emerged in the US, the EU is clearly not willing to have things out of control especially on such a dynamic and wealthy market as the music market is. So far, no conclusion can be driven out of the present situation and it will be quite interesting to see how will the European Commission act in the future.

One thing is clear and beyond any doubt: even though Sony BMG failed so far to release the information requested by the EU, the Commission will not let things as they are now. I wonder if they somehow force Sony-BMG to handle the needed data. They can do it, both parties know this and the European modern tradition of solving things in a delicate (though rather bureaucratic) manner does not advocate for force. Nevertheless, I guess they would use some kind of pressure, should need be.

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