Senate Subcommittee To Examine UMG/EMI Merger
UMG’s proposed buyout of EMI’s recorded music division will be investigated by a Senate Judiciary subcommittee on antitrust issues. Currently, Universal has about 30 percent of the global recorded music market, and if the $1.9 billion EMI transaction goes through, the combined entity would have roughly 40 percent.
The Federal Trade Commission is also looking into the deal, as well as Sony’s planned buyout of EMI Music Publishing for $2.2 billion.
The subcommittee is chaired by Senator Herb Kohl (D-WI) who fought AT&T’s proposed $39 billion purchase of T-Mobile last year. That transaction was also opposed by the FTC and never closed.
According to the LA Times, Congressional hearings have no formal sway over antitrust regulators.
European regulators have already approved Sony’s purchase of EMI Music Publishing.
