EU: EMI AND TIME WARNER OFFER CONCESSIONS

Article Abstract:

EMI and Time Warner presented a number of concessions on 18 September 2000 to European Competition Commissioner, Mario Monti, in an attempt to obtain clearance for their merger. The European Commission is particularly concerned over the merged group's dominant position in the market for music downloaded via the Internet. Meanwhile, Mr Monti expressed concern over the Internet in terms of its impact on competition. He noted that regulators may have to amend what is classed as market dominance owing to the convergence of the media and Internet markets.

European Union, Records & Tapes, Brief Article, Time Warner Inc., EMI Group PLC

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RAC sell-off faces a rough ride

Article Abstract:

The US based conglomerate, Cendant, that is planning to takeover the Royal Automobile Club or RAC, the UK based emergency breakdown recovery service, is expected to face severe regulatory problems. Over the next few weeks the Office of Fair Trading must decide whether or not to refer the deal to the Monopolies and Mergers Commission (MMC). The regulatory hurdles to the deal could prove to be more difficult that Cendant has anticipated. The main problem is likely to be that the deal with reduce the UK's breakdown recovery market to just two main players. Cendant already owns the third largest group, Green Flag, meaning that the combination of RAC's 30% market share and Green Flags 10% will be severe competition to the AA's 45% share. Merger proposals put forward to the MMC in other industries where the result will be just two main players are not encouraging. However, Cendant claims that Green Flag is quite small compared to other companies and most of its business is direct to car manufacturers rather than in the retail trade, meaning the competition between the RAC and the AA will remain unchanged.

Comment:

Is planning to takeover Royal Automobile Club, a UK based emergency breakdown recovery service, UK

Foreign operations, Automotive Repair Services, Automotive Repair and Maintenance, Automotive maintenance, Avis Budget Group Inc., Royal Automobile Club, Article

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Independent record labels roll over as the conglomerates go rocking on

Article Abstract:

It is becoming increasingly common for independent record labels to be purchased by the top conglomerates. Most recently, A&M records closed down following the purchase of PolyGram by Seagram, having since the late 1980s been operating as a mainly independent unit of PolyGram Entertainment. Many small record labels have been suffering financial difficulties, so it seems logical that they should be purchased by larger ones. However, some observers believe that this trend is having a negative impact on the soul of the music industry.

Comment:

A&M Records ends operation

Consumer Audio Recordings, Planning, Seagram Company Ltd., VO, PolyGram Corp., A and M Records Inc.

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