2007/735/EC: Commission Decision of 4 October 2006 relating to a proceeding pursuant to Article 81 of the EC Treaty and Article 53 of the EEA Agreement (Case COMP/C2/38.681 — The Cannes Extension Agreement) (notified under document number C(2006) 4350) (Text with EEA relevance)
Date: 2006-10-04
Institutions: European Commission
Subjects: audiovisual industry, competition law, management, music, publisher, reprography

15.11.2007

EN

Official Journal of the European Union

L 296/27

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COMMISSION

COMMISSION DECISION

of 4 October 2006

relating to a proceeding pursuant to Article 81 of the EC Treaty and Article 53 of the EEA
Agreement
(Case COMP/C2/38.681 — The Cannes Extension Agreement)

(notified under document number C(2006) 4350)

(Only the English, French and German texts are authentic)

(Text with EEA relevance)

(2007/735/EC)

On 4 October 2006 the Commission adopted a Decision relating to a proceeding under Article 81 of
the EC Treaty and Article 53 of the EEA Agreement. In accordance with the provisions of Article 30 of
Council Regulation (EC) No 1/2003 (1), the Commission herewith publishes the names of the parties
and the main content of the Decision, having regard to the legitimate interest of undertakings in the
protection of their business interests. A non-confidential version of the full text of the Decision can be
found in the authentic languages of the case, which are in this case the same as the Commission’s
working languages, at Directorate-General
following address:
http://ec.europa.eu/comm/competition/antitrust/cases/index/by_nr_77.html#i38_681

for Competition’s website at

the

(1)

Protection

Idioktisias A.E.

Vervielfältigungsrechte
Society

This Decision is addressed to Elliniki Etairia Prostasias tis
Pneymatikis
(AEPI), Gesellschaft zur
Wahrnehmung mechanisch-musikalischer Urheberrechte
m.b.H. (AustroMechana), BMG Music Publishing Interna-
für musikalische Aufführungs-
tional Ltd, Gesellschaft
(GEMA),
und mechanische
Limited
Mechanical-Copyright
(MCPS), Mechanical-Copyright Protection Society Ireland
(MCPSI), Nordic Copyright Bureau (NCB), Société Belge
des Auteurs Compositeurs et Editeurs (SABAM), Société
de Reproduction
pour
Editeurs
Mécanique des Auteurs, Compositeurs
(SDRM), Sociedad General Autores y Editores (SGAE),
Società
(SIAE),
Sociedade
Sony/ATV Music
Portuguesa
Stemra
de Autores
für die Rechte
(STEMRA), Schweizerische Gesellschaft
der Urheber musikalischer Werke (SUISA), Universal
Music Publishing Group and Warner Chappell Music
Ltd, hereafter referred to as ‘the parties to the Cannes
Extension Agreement’.

degli Autori
Publishing

l’Administration

ed
Europe,

du Droit

Stichting

Italiana

Editori

(SPA),

et

(1) OJ L 1, 4.1.2003, p. 1. Regulation as amended by Regulation (EC)

No 411/2004 (OJ L 68, 6.3.2004, p. 1).

(2)

copyright

(13 of which are

the EC Treaty and 53 of

The subject matter of the procedure was the Cannes
Extension Agreement,an agreement
among the 18
collecting
companies
societies managing mechanical copyright in music and
five major music publishers, members of these collecting
societies) concerning the relations between them in the
management of mechanical copyright of music licensed
the reproduction of sound
to record companies for
recordings on physical
In its preliminary
carriers.
assessment, the Commission expressed concerns under
Article 81 of
the EEA
Agreement about two clauses of the Cannes Extension
Agreement. The first was a clause that provided that
before granting a rebate to a record company in the
context of a Central Licensing Agreement, a collecting
‘the relevant
society needed the written consent of
member’. The second was a clause that provided that
collecting societies may never enter either the music
publishing or
record production markets. The
Commission’s competition concerns were that the first
clause could have the effect of making it very difficult
or even impossible for collecting societies
to grant
rebates to record companies and that the second clause
could prevent potential
collecting
societies in the music publishing and record production
markets.

competition by

the

L 296/28

EN

Official Journal of the European Union

15.11.2007

(3)

to the effect

The Commission considers that the commitments offered
by the parties to the Cannes Extension Agreement are
sufficient to address the identified competition concerns.
In particular the parties have reformulated the clause
that a collecting
referring to rebates
society may decide to offer a rebate paid out of the
retains from royalties
administrative expenses that
due to its members by a simple decision of
its
competent body with no need to obtain the written
the ‘relevant member’. The parties have
consent of
deleted the clause preventing collecting societies from
entering the music publishing and the record production

it

markets and have undertaken not to enter into a similar
agreement in the future.

The decision finds,
in view of the commitments made
to the Cannes Extension
binding on the parties
Agreement, that there are no longer grounds for action
by the Commission.

The Advisory Committee on Restrictive Practices and
Dominant Positions
issued a favourable opinion on
18 September 2006.

(4)

(5)