EMI are back in the headlines today with an approach from Warner Music. The two companies have had abortive discussions before. Now EMI find themselves in the midst of a major strategic repositioning and in search of building a more secure future. However, it is far from guaranteed that any deal would go through. The European competition authorities (and potentially European Court) are likely to have something to say. Only recently the European Court ruled against them 2004 SonyBMG merger on grounds of being anti-competitive.
In an attempt to preempt such concerns Warner have made an announcement of initiatives the label would put in place with the independent sector. Iím not going to pretend to be an expert in competition law (because I’m not), but if the SonyBMG deal finds itself under renewed scrutiny it is difficult to see how further consolidation in an already very concentrated marketplace would not be questioned, regardless of public sops to the independent sector.