WRITTEN QUESTION E-0581/04 by Glyn Ford (PSE) to the Commission. Relationships between the media and recording companies.
Date: 2004-02-26
Institutions: European Parliament, Provisional data
Subjects: audiovisual industry, commercial media, economic concentration, merger control, music, restriction on competition, restrictive trade practice

C 84 E/632

Official Journal of the European Union

EN

3.4.2004

Answer given by Mr Prodi on behalf of the Commission

(2 April 2004)

As the Commission has pointed out on a number of occasions in response to written and oral questions
from MEPs, the Members of the Commission are politicians exercising a political function and, provided
that
they remain free to express their personal views quite
independently and on their own responsibility, as well as to be a member of a political party.

they perform the duties incumbent,

This having been made clear, Mr Prodi has confirmed that he does not intend to stand as a candidate in
the election or take an active part in the election campaign. As in the past, he will continue to devote all
his energy to his responsibilities as President of the Commission until the end of his term of office.

(2004/C 84 E/0710)

WRITTEN QUESTION E-0581/04

by Glyn Ford (PSE) to the Commission

(26 February 2004)

Subject: Relationships between the media and recording companies

Can the Commission clarify its position with regard to the relationship that broadcasters have with record
companies? It is felt by many smaller record companies that they are unfairly treated by radio and TV
companies in comparison to the bigger record companies and are therefore squeezed out of the market.

Answer given by Mr Monti on behalf of the Commission

(19 March 2004)

The Commission services in charge of competition policy have dedicated significant attention to European
music markets, particularly over these past years when digital technology and media convergence seemed
to push vigorously towards heavy concentration amid the major players. These issues were raised with
particular emphasis in 2000 during the AOL/Time Warner merger proceedings and the EMI/Time Warner
attempted merger.
the global recorded music businesses of
Germany’s Bertelsmann AG and Japan’s Sony Corp the Commission has decided to open a full
investigation into the proposed merger due to concerns that the transaction might create or strengthen a
collective dominant position of the major record companies in the markets for recorded music. In the
course of the investigation, the Commission will also investigate further competition concerns related to
the vertical integration of the parent companies in other markets, such as the possible implications of the
notified joint-venture on Bertelsmann’s activities in the broadcasting sector (1).

In the ongoing merger proceedings of

The activity of the Commission in the field of competition policy does not only cover mergers but also
restrictive practices and agreements such as the ones referred to by the Honourable Member. In order to
intervene in unregulated markets such as the music business, however, the Commission requires a solid
factual basis allowing it to properly assess claimed distortions in the functioning of the markets. Also, the
jurisdiction of the Commission under Community competition law only exists where an appreciable effect
on trade between Member States is shown.

So far, the Commission did not come across factual evidence allowing it to suppose the existence of
restrictive practices in the relationship between different types of record companies and broadcasters such
as to have an appreciable effect on trade between Member States.

(1) The press release is available at:

http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/04/200|0|RAPID&lg=EN