Source: EURLEX
Language: en
Format: md

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| 1.9.2007 | EN | Official Journal of the European Union | C 204/6 |

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Opinion of the Advisory Committee on Concentrations given at its 150th meeting on 10 May 2007 concerning a draft decision relating to Case COMP/M.4404 — Universal/BMG Music Publishing

(2007/C 204/03)

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| 1. | The Advisory Committee agrees with the Commission that the notified operation constitutes a concentration within the meaning of Article 3(1)(b) of the EC Merger Regulation and that it has a Community dimension pursuant to Article 1(3) of that Regulation. |

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| 2. | The Advisory Committee agrees with the Commission that the relevant product markets can be characterised as follows:   |  |  |  |  |  |  |  |  |  |  |  |  | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (a) | Markets for the exploitation of music publishing rights  The relevant product markets need to be defined along the following categories of rights since the customer needs, the prices as well as the overall economic conditions differ significantly:   |  |  | | --- | --- | | — | mechanical rights, |  |  |  | | --- | --- | | — | performance rights, |  |  |  | | --- | --- | | — | synchronisation rights, |  |  |  | | --- | --- | | — | print rights, |  |  |  | | --- | --- | | — | online rights; | |  |  |  | | --- | --- | | (b) | Market for music publishing services to authors. | |

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| 3. | The Advisory Committee agrees with the Commission that the geographic scope of the relevant product markets is:   |  |  |  |  |  |  |  |  | | --- | --- | --- | --- | --- | --- | --- | --- | | (a) | Markets for the exploitation of music publishing rights   |  |  | | --- | --- | | — | mechanical and performance rights: national, |  |  |  | | --- | --- | | — | print and synchronisation rights: largely national, |  |  |  | | --- | --- | | — | online rights: currently national, but it is possible that it will develop to an EEA-wide scope. However, there is no need to strictly define the geographic scope of the market for online rights as the competitive assessment will remain unchanged under a national or EEA wide dimension; | |  |  |  |  |  | | --- | --- | --- | --- | | (b) | Market for music publishing services to authors   |  |  | | --- | --- | | — | the geographic scope of the market appears to be national. The exact geographic scope may, however, be left open since the conclusions of the analysis will be the same under any geographic dimension. | | |

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| 4. | The Advisory Committee agrees with the Commission that the proposed concentration will not significantly impede effective competition on the market for music publishing services for authors. |

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| 5. | The Advisory Committee agrees with the Commission that the proposed concentration will not significantly impede effective competition on the market for the exploitation of synchronisation rights, on the market for the exploitation of print rights, on the market for the exploitation of mechanical rights and on the market for the exploitation of performance rights. |

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| 6. | The Advisory Committee agrees with the Commission's view that it is very likely that Universal will post-merger, on the basis of non-coordinated effects, have the possibility and the incentive to increase prices for its repertoire of Anglo-American mechanical rights for online applications. The Advisory Committee agrees that the merger therefore raises serious doubts with respect to the market for online rights (which are composed of mechanical and performance rights for online applications) both on an EEA-wide level and in the countries Austria, the Czech Republic, Germany, Poland and the UK. |

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| 7. | The Advisory Committee agrees with the Commission that the Final Remedies Package submitted on 23 April 2007 which comprises the following catalogues and contracts:   |  |  |  |  |  |  |  |  |  |  |  |  | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (a) | BMG MP catalogues   |  |  | | --- | --- | | — | Zomba Music Publishers Limited |  |  |  | | --- | --- | | — | 19 Music Limited |  |  |  | | --- | --- | | — | 19 Songs Limited |  |  |  | | --- | --- | | — | BBC music publishing catalogue |  |  |  | | --- | --- | | — | Zomba U.S. (EEA-wide licence) | |  |  |  |  |  | | --- | --- | --- | --- | | (b) | Universal catalogues   |  |  | | --- | --- | | — | Rondor Music (London) Limited | |   is sufficient to remove the competition concerns on the market for publishing rights for online applications, both under an EEA-wide or national geographic market definition. |

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| 8. | The Advisory Committee agrees with the Commission that, the proposed concentration as modified by the Commitments does not significantly impede effective competition in the common market or a substantial part of it, in particular as a result of the creation or strengthening of a dominant position, and that pursuant to Articles 8(2) and 10(2) of the Merger Regulation and Article 57 of the EEA Agreement the proposed concentration is therefore to be declared compatible with the Common Market and with the EEA Agreement, subject to full compliance with the commitments offered by the notifying party. |

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| 9. | The Advisory Committee asks the Commission to take into account all the other points raised during the discussion. |

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