A legal victory for indie labels

Sketch · **Posted:** Thu Jul 13, 2006 11:52 am

http://uk.news.yahoo.com/13072006/325/i ... -case.html

discostu · **Posted:** Thu Jul 13, 2006 12:03 pm

Saw this. Apparently this does nothing to the "joint venture" SonyBMG have been operating under since Aug. 2004.

Flying Rabbit · **Posted:** Thu Jul 13, 2006 12:06 pm

Quote:

Independent labels, home to artists like the White Stripes, Arctic Monkeys and Franz Ferdinand, typically lack the geographical breadth and marketing clout of their larger rivals.

hehe

Evil Dr. K · **Joined:** Mon Oct 25, 2004 11:51 am **Posts:** 6327

I just checked. I've bought 3 major label albums in the last two years.

HaqDiesel · **Posted:** Thu Jul 13, 2006 1:06 pm

this is awesome.

Hegel · **Posted:** Thu Jul 13, 2006 1:08 pm

So. How is the merger illegal? If it's not then I don't understand how they can say it's not right. Just because the little guys don't think it's fair? I don't know the laws about this stuff at all, but I don't see how to corporations merging is illegal.

Sketch · **Posted:** Thu Jul 13, 2006 1:12 pm

It's a market dominance issue, though I don't know the specifics of EU law. From a different article:

Quote:

Europe's second-highest court, in its first rejection of an EU decision, said too cursory an examination was conducted into whether there was already collective market dominance in the music industry and whether that dominance might grow following the Sony BMG deal.

HaqDiesel · **Posted:** Thu Jul 13, 2006 1:13 pm

It depends on a jurisdiction's antitrust laws, Joe, but a merger can be illegal in the US if the merged company has so much market power that they can raise prices above competitive levels. E.g. no one else can increase their own production enough to fill demand at a competitive price.

Hegel · **Posted:** Thu Jul 13, 2006 1:20 pm

ok. thanks.

A legal victory for indie labels

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