On the 16 April 2008 the European Commission published in th OJ (Official Journal of the EUropean Union) three texts account for three different prespectives concerning the concentration between Sony/BMG and its compatibilty with the common market and the functioning of the EEA Agreement. The concentration is otherwise known as Case COMP/M.3333 — Sony/BMG.

As concerning the Opinion of the Advisory Committee on Mergers relating to Case COMP/M.3333 — Sony/BMG which was published in the Official Journal of the European Union (OJ) on 16/04/2008:

The majority of the members of the Advisory Committee agrees with the Commission that in the present case the relevant product markets are:

1. The market for physical recorded music.
2. The market for licensing of recorded music in digital format which might be further subdivided into markets for online and mobile digital music.

A minority of the members of the Advisory Committee disagrees with point 1.

The members of the Advisory Committee agree with the Commission that the proposed concentration should be declared compatible with the Common Market and with the EEA Agreement.

Final report of the Hearing Officer in Case COMP/M.3333 — Sony/BMG

In the Final report of the Hearing Officer in Case COMP/M.3333 — Sony/BMG published it was noted that On 9 January 2004, the Commission received a notification that AG and Sony Corporation of America acquired joint control of the record music joint venture ‘Sony BMG’ by way of purchase of shares in a newly created company. The Commission declared the concentration compatible with the common market and on the 13 July 2004, concluded proceedings had been respected.

However, subsequently, the Court of First Instance of the European Communities annulled the Commission decision due to an application for annulment submitted by Independent Music Publisher and Labels Association (IMPALA). Thus, after further investigation the Merger Regulation raised serious doubts as to its compatibility with the common market and the functioning with the EEA Agreement and the procedure was suspended.

Following an in-depth market investigation carried out by the Commission services it was concluded that the proposed transaction would not significantly impede effective competition in the common market or a substantial part of it and is therefore compatible with the common market and the EEA Agreement.

Summary of Commission Decision of 3 October 2007

Also a Summary of Commission Decision of 3 October 2007 declaring a concentration compatible with the common market and the functioning of the EEA Agreement (Case COMP/M.3333 — Sony/BMG) was also published on the 16th April 2008

In assessment, the commission found that Whilst the recorded music industry was already concentrated prior to the merger in 2004, Sony BMG's market shares remain below a level that could generally be considered as constituting a single dominant position in any of the national markets. Also, the merger has not led to competitive issues with regard to market foreclosure of digital music retailers, portable music player manufacturers or independent record companies.

The effect of the merger has been to reduce the number of competitive relationships, the market investigation has not provided evidence that the merger has enabled or facilitated tacit coordination. In addition, the contract and price data show that the merger has not led to an overall increase of wholesale prices for BMG or Sony content.

Therefore, in conclusion the proposed concentration will not significantly impede effective competition, by creating or strengthening a dominant position, in the Common Market or in a substantial part of it. Consequently, the concentration is declared compatible with the Common Market and the EEA Agreement, in accordance with Article 8(2) of the Regulation (EEC) No 4064/89 and Article 57 of the EEA Agreement.

The offical regulation (EEC) No 4064/89 merger procedure for Case COMP/M.3333 — Sony/BMG was published on the 19th July 2004.