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Letter to FTC Concerning UMG's Proposed Acquisition of EMI

Letter to FTC Concerning UMG's Proposed Acquisition of EMI

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Published by: Public Knowledge on Mar 07, 2012
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 Cb~f` 7! >42>C~, ^hf`b~m Ekhlv}khl! Mh~kf}i~C~, Li~cbl B~cv}~ilg! Mkt{}x Mh~kf}i~Ieehfk ie Tiahfx blm Fii~mhlb}hilN{~kb{ ie Fictk}h}hil! @#67=Ekmk~ba ]~bmk Ficchvvhil544 Tkllvxaublhb Bukl{k! LWWbv`hlg}il! MF >4;04Mkb~ C~, Ekhlv}khl blm C~, B~cv}~ilg?Wk w~h}k }i xi{ }i kpt~kvv filfk~l iuk~ `iw c{vhfhblv blm b{mhklfkv whaa nk hctbf}kmnx [lhuk~vba C{vhf G~i{t
v t~itivkm bfr{hvh}hil ie 
KCH‘v ~kfi~mkm
#c{vhf mhuhvhil blm }`kt~itivkm bfr{hvh}hil ie 
KCH‘v c{
vhf t{nahv`hlg mhuhvhil nx b filvi~}h{c akm nx VilxFi~ti~b}hil ie Bck~hfb, Bv }`k Ekmk~ba ]~bmk Ficchvvhil cbjkv h}v bvvkvvckl} ie w`k}`k~ }`kt~itivkm }~blvbf}hilv b~k filvhv}kl} wh}` bl}h}~{v} abw! wk {~gk xi{ }i filvhmk~ `iw }`kvk}~blvbf}hilv whaa hctkmk hlukv}ckl}! hlliub}hil! blm }`k~kei~k fictk}h}hil! w`hf` }`k E]F hvf`b~gkm wh}` t~ici}hlg, Bffi~mhlgax! wk bavi {~gk xi{ }i bvvkvv }`k t{nahf hl}k~kv} hctbf}v ie }`k t~itivkm bfr{hvh}hilv blm filvhmk~ }`k filvkr{klfkv }`kvk }~blvbf}hilv fi{am `buk {til }`kmkukaitckl} ie c{vhf mhv}~hn{}hil blm i}`k~ vk~uhfkv }`b} {a}hcb}kax nklkeh} c{vhfhblv blm }`kh~eblv kuk~xw`k~k,I{~ i~gblhzb}hilv ailg `buk v{tti~}km tiahfhkv }`b} t~ici}k hlliub}hil blm f~kb}huh}x hl}`k mhgh}ba kluh~ilckl}, B f~h}hfba tb~} ie }`hv chvvhil hv klfi{~bghlg }`k g~iw}` ie vk~uhfkv }`b}`kat b~}hv}v mkukait }`kh~ f~be} blm ~kbf` eblv, ]`kvk vi~}v ie vk~uhfkv hlf~kbvk }`k bubhabnhah}x ie fil}kl}! `kat m~huk hlliub}hil! blm t~ici}k b `kba}`x! fictk}h}huk kluh~ilckl} hl w`hf`filv{ck~v b~k }`k whllk~v,]`k bmukl} ie mhgh}ba c{vhf vk~uhfkv wbv b niil }i ni}` c{vhfhblv blm b{mhklfkv!ieek~hlg kpfh}hlg lkw itti~}{lh}hkv ei~ b~}hv}v }i f~kb}k! t~ici}k! mhv}~hn{}k! blm cilk}hzk }`kh~wi~jv, Mhgh}ba }kf`liaigx itklv bl kl}h~k lkw wi~am ie it}hilv ei~ c{vhfhblv bv }`kx mkfhmk`iw }`kx wbl} }i cbjk blm v`b~k }`kh~ c{vhf, Lkw mkukaitckl} blm mhv}~hn{}hil vk~uhfkvkctiwk~ c{vhfhblv }i f`iivk `iw }`kx whaa v`btk }`kh~ fb~kk~v blm `kat c{vhfhblv nk ci~k~kvtilvhuk }i b{mhklfk mkcblm ei~ }`kh~ wi~j, C{vhfhblv cbx v}haa f`iivk b ci~k }~bmh}hilba!}~blvbf}hil#nbvkm i{}~kbf` blm mhv}~hn{}hil cimka! i~ }`kx cbx f`iivk }i n{ham mkktk~~kab}hilv`htv wh}` }`kh~ eblv, Kbf` v}~b}kgx t~kvkl}v mheek~kl} bmubl}bgkv blm f`baaklgkv! blm }`k~hg`} f`ihfk whaa mktklm {til }`k {lhr{k tivh}hil ie kbf` hlmhuhm{ba b~}hv}, Nx ghuhlg c{vhfhblvci~k it}hilv e~ic w`hf` }i f`iivk! mhgh}ba c{vhf vk~uhfkv hlf~kbvk
c{vhfhblv‘ bnhah}x }i
f~be}b~}hv}hfbaax blm ehlblfhbaax v{ffkvve{a fb~kk~ cimkav, Blm kctiwk~hlg c{vhfhblv nklkeh}vb{mhklfkv! w`i kloix lkw wbxv }i bffkvv! kptk~hklfk! blm hl}k~bf} wh}` c{vhf,W`kl ~kfi~m abnkav blm i}`k~ fitx~hg`} iwlk~v b~k whaahlg }i kptai~k lkw mhgh}bamhv}~hn{}hil }kf`liaighkv! lkw vk~uhfkv }`b} nklkeh} ni}` filv{ck~v blm b~}hv}v kl}k~ }`kcb~jk}tabfk, Ei~ kpbctak! }`k Fbl}i~b Abnv hlh}hb}huk e{lf}hilv bv b tab}ei~c ei~ lkw mhgh}ba}kf`liaighkv }`b}! b} akbv} hlh}hbaax! {}hahzk }`k Fbl}i~b ^kfi~mv fb}baig }i mkukait lkw ieek~hlgv
 
 >blm hl}k~ebfkv }i fillkf} c{vhfhblv blm }`kh~ eblv, KCH C{vhf h}vkae `bv ab{lf`km b t~iokf}fbaakm ItklKCH! w`hf` baaiwv mkukaitk~v }i bffkvv tb~}v ie }`k KCH C{vhf fb}baig }i mkukaitlkw bttahfb}hilv }i mhv}~hn{}k c{vhf, Ba}`i{g` }`kvk kpbctakv b~k ci~k ahch}km hl fil}kl} vfitk!blx mhgh}ba c{vhf vk~uhfk }`b} mktklmv {til b c{vhf ahn~b~x ie v{nv}bl}hba n~kbm}` blm mkt}`!v{f` bv Vti}hex i~ }`k h]{lkv c{vhf v}i~k! whaa ebha he h} fblli} ieek~ b f~h}hfba cbvv ie tit{ab~c{vhf }i filv{ck~v, ]`k v{ffkvv ie }`kvk i{}ak}v whaa beekf} i}`k~ mhv}~hn{}hil tab}ei~cmkukaitk~v bv wkaa bv filv{ck~v aiijhlg ei~ kbvx! ~kbvilbnak bffkvv }i c{vhf, Ei~ kpbctak! }`hvtbv} Liukcnk~! Vti}hex blli{lfkm }`b} h} wi{am nk g~bl}hlg mkukaitk~v bffkvv }i h}v c{vhfahn~b~x nx wbx ie bl btt e~bckwi~j, Hl }`ki~x! liw blxilk fbl f~kb}k bl btt }`b} {vkv baa ie }`kvilgv }`b} Vti}hex f{~~kl}ax ieek~v,KCH C{vhf hl tb~}hf{ab~ `bv v`iwl whaahlglkvv }i kptai~k }`k uhbnhah}x ie lkw mhgh}bac{vhf vk~uhfkv! kukl w`kl h} wbv }`k viak cboi~ ~kfi~m abnka }bjhlg v{f` ~hvjv, Nx >44>! KCH`bm kl}k~km hl}i lhlk mheek~kl} mhgh}ba miwlaibm mkbav wh}` mhgh}ba mhv}~hn{}hil fictblhkv ahjkC{vhfLk}! T~kvvTabx! Kfbv}! blm Ahr{hm B{mhi, Hl >447! KCH nkfbck }`k eh~v} ie }`k cboi~ abnkav}i ieek~ mhgh}ba miwlaibmv }`~i{g` }`k h]{lkv c{vhf v}i~k wh}`i{} mhgh}ba ~hg`}v cblbgkckl}~kv}~hf}hilv, [lv{~t~hvhlgax! i}`k~ cboi~ abnkav eiaaiwkm v{h} wh}`hl }`k lkp} xkb~,Ie}kl mhgh}ba c{vhf vk~uhfkv mktklm {til }`k fiitk~b}hil i~ fiaabni~b}hil ie }`k ~kfi~mabnkav }`b} iwl }`k ~kakubl} vi{lm ~kfi~mhlg fitx~hg`}v i~ }`k t{nahv`k~v }`b} fil}~ia }`k c{vhfbafictivh}hilv, Bv b{mhklfk mkcblm f{~~kl}ax }{~lv }i b v}~kbchlg! fai{m#nbvkm cimka! lkwmhv}~hn{}hil vk~uhfkv whaa `buk }~i{nak ab{lf`hlg wh}`i{} b cboi~ abnka whaahlg }i nk }`k eh~v} }ig~bl} ahfklvkv! blm {a}hcb}kax cbx lkuk~ v{ffkkm he b vhlgak cboi~ abnka fbl wh}``iam =4+ ie }`k~kfi~mkm c{vhf cb~jk} kukl be}k~ i}`k~ abnkav `buk v}b~}km wi~jhlg wh}` }`k vk~uhfk, Kukl hl
}imbx‘v cb~jk}tabfk b cboi~ abnka fbl whkam v{eehfhkl} tiwk~ }i
mkcblm }`b} ti}kl}hba lkwmhgh}ba c{vhf vk~uhfkv tbx }`k abnka `ke}x bmublfkv blm b `hg` tk~fkl}bgk ie e{}{~k ~kukl{k! i~ghuk }`k ~kfi~m abnka bl kr{h}x v}bjk hl }`k lkw fictblx, B ficnhlkm [lhuk~vba)KCH kl}h}xwi{am ilax nk bnak }i kpk~} kukl ci~k fil}~ia iuk~ lkw c{vhf vk~uhfkv,Nbvkm il >424 xkb~#klm ehg{~kv! }`k ei{~ cboi~ ~kfi~m abnkav bffi{l} ei~ baciv} 84+ ie ~kfi~mkm c{vhf vbakv hl }`k [,V, [lhuk~vba hv }`k ab~gkv} fictblx! wh}` b v`b~k ie 64,0+!eiaaiwkm nx h}v lkb~kv} fictk}h}i~! Vilx (b} >0,4+! }`kl Wb~lk~ C{vhf G~i{t (WCG (>4,4+!blm KCH (24,>+,
2
]`hv akbukv ilax bl 22,4+ cb~jk} v`b~k ei~ hlmktklmkl} abnkav,
>
Gainbaax!hlmktklmkl} abnkav kb~lkm b >6,>+ v`b~k ie }i}ba ~kfi~mkm c{vhf vbakv hl >424! miwl e~ic >6,8+hl >448,
6
 Ciuhlg ei~wb~m! b tiv}#bfr{hvh}hil [lhuk~vba wi{am nk hl b tivh}hil }i e{~}`k~ h}vmichlblfk nx wh}``iamhlg ahfklvkv ei~ h}v ~kfi~mkm c{vhf blm c{vhf t{nahv`hlg ~hg`}v,T~kahchlb~x kv
}hcb}kv v`iw }`b} be}k~ [lhuk~vba bfr{h~kv KCH‘v ~kfi~mkm
c{vhf mhuhvhil! h}wi{am fil}~ia =2,4+ ie baa ~kfi~mkm c{vhf vbakv hl }`k [,V, (nbvkm il >424 mb}b
 ” 
ci~k }`bl
2
Bahfk Klmk~v % Nkl ^{cakx!
 KCH? ]`k Gbck ie C{vhf F`bh~v Fil}hl{kv
! K
LMK^V
B
LBAXVHV
b} 5 (Mkf, 7! >422,
>
 
 Hm,
6
 
 C{vhf % Fitx~hg`} 
! H
LEI^CB
]
KAKFICV
%
 
C
KMHB
!
 
6 (Cb~, >6! >422,
 
 6
}whfk WCG‘v >4,4
+ v`b~k,
=
Be}k~ }`k bfr{hvh}hil! }`k oihl} kl}h}x wi{am fil}~ia }`k ~kfi~mkmc{vhf ~hg`}v blm)i~ b} akbv} vick ti~}hil ie }`k c{vhf t{nahv`hlg ~hg`}v }i vick ie }`k civ}
 tit{ab~ c{vhf hl }imbx‘v cb~jk}
! hlfa{mhlg 50 ie }`k Nhaanib~m @i} 244 }h}akv ei~ fbaklmb~ xkb~>422,
;
]`hv vi~} ie fil}~ia wi{am t{} [lhuk~vba hl
b tivh}hil }i ‑cbjk i~ n~kbj– blx lkw vk~uhfk
baa nx h}vkae! baaiwhlg h} }i `bctk~ hlliub}hil blm)i~ mkcblm kpi~nh}bl} }k~cv blm filmh}hilv, Bvb ~kv{a}! filv{ck~v c{v} kh}`k~ chvv i{} il ti}kl}hba lkw vk~uhfkv i~ tbx kpfkvvhuk ekkv ei~ }`ivkvk~uhfkv, Vh
chab~ax! Vilx‘v bfr{hvh}hil ie KCH wi{am ghuk h} b vhglhehfbl} naifjhlg tivh}hil hl
c{vhf t{nahv`hlg wi~amwhmk,
5
He ficnhlkm! }`k Vilx)KCH t{nahv`k~ wi{am fil}~ia 6>,>+ ie c{vhf t{nahv`hlg ~kukl{kv wi~amwhmk! cbjhlg }`k ficnhlkm kl}h}x =4+ ab~gk~ }`bl h}v lkb~kv}
fictk}h}i~! [lhuk~vba! blm ci~k }`bl }whfk }`k vhzk ie Wb~lk~‘v t{nahv`hlg itk~b}hilv,
7
@k~k hl}`k [,V,! h} wi{am `iam b} akbv} vick ti~}hil ie }`k t{nahv`hlg ~hg`}v }i 5= ie }`k Nhaanib~m @i}244 }h}akv ei~ fbaklmb~ xkb~ >422! hlfa{mhlg }h}akv ei~ w`hf` }`k ~kfi~mhlg ~hg`}v b~k f{~~kl}ax `kamnx h}v fictk}h}i~v,
0
Ci~kiuk~! h} wi{am fil}~ia }`k ~kfi~mkm c{vhf ~hg`}v blm)i~ b} akbv} vickti~}hil ie }`k c{vhf t{nahv`hlg ~hg`}v }i 78 ie }`k Nhaanib~m @i} 244 }h}akv ei~ fbaklmb~ xkb~>422,
8
 Hl kvvklfk!
}`k }wi cboi~v‘ w`hcv wi{am fil}~ia }`k kck~gklfk ie lkw mhv}~hn{}hil
it}hilv ei~ }`k kl}h~k hlm{v}~x, Mhgh}ba vk~uhfkv }`b} mi li} ~kr{h~k tk~ei~cblfk ~hg`}v i~ lil#v}b}{}i~x ckf`blhfba ~hg`}v hl c{vhf t{nahv`hlg wi{am v}haa fick {t bgbhlv} [lhuk~vba! bv }`kmichlbl} tabxk~ hl ~kfi~mkm c{vhf! w`hak vk~uhfkv ~kr{h~hlg tk~ei~cblfk ~hg`}v ahfklvkv i~ lil#v}b}{}i~x ckf`blhfba ~hg`}v ahfklvkv wi{am lkkm }i mkba wh}` ni}` [lhuk~vba blm Vilx! il kbf`
fictblx‘v
iwl }k~cv! hl i~mk~ }i ab{lf` b uhbnak vk~uhfk,Fictk}h}hil bcilg t~im{f}hil blm mhv}~hn{}hil hl}k~ckmhb~hkv hl }`k c{vhf hlm{v}~x{a}hcb}kax ghukv ci~k f`ihfk }i c{vhfhblv blm akbmv }i nk}}k~ cb~jk} ieek~hlgv ei~ filv{ck~v,Fictk}h}hil hlf~kbvkv }`k mhuk~vh}x ie f`ihfkv ei~ filv{ck~v! kctiwk~hlg filv{ck~v }i f`iivk}`k vk~uhfkv }`b} nkv} eh} }`kh~ lkkmv b} }`k nkv} t~hfk, He ilk i~ }wi cboi~ abnkav in}bhl kli{g`hlea{klfk }i v}heak }`k mkukaitckl} ie lkw mhgh}ba c{vhf vk~uhfkv! }`ivk vk~uhfkv lkuk~ whaa nk
=
Bahfk Klmk~v % Nkl ^{cakx!
 KCH? ]`k Gbck ie C{vhf F`bh~v Fil}hl{kv
! K
LMK^V
B
LBAXVHV
b} 5 (Mkf, 7! >422,]`kvk l{cnk~v hlfa{mk vi{lm ~kfi~mhlgv iwlkm nx hlmktklmkl} abnkav i~ c{vhfhblv n{} mhv}~hn{}km }`~i{g` ilk ie 
}`k cboi~ abnkav, ]i }`k kp}kl} }`b} [CG‘v mhv}~hn{}hil fil}~bf}v wh}` vcbaak~ abnkav baaiw h} }i vk} (i~ ~ke{vk }i vk}
t~hfkv blm ~b}kv wh}` mhgh}ba mhv}~hn{}i
~v ei~ }`ivk abnkav‘ ~kfi~mhlgv! }`ivk fil}~bf}v hlf~kbvk [CG‘v akuk~bgk iuk~ mhgh}ba mhv}~hn{}i~v blm v`i{am nk filvhmk~km `k~k, Hl }{~l! [CG‘v hlf~kbvkm fil}~ia iuk~ mhgh}ba mhv}~hn{}hil whaa
baaiw h} }i mkcblm b `hg`k~ tk~fkl}bgk ie vbakv blm ahfklvkv e~ic }`k vcbaak~ abnkav hl h}v gklk~ba mhv}~hn{}hilbg~kkckl}v,
;
 
 Nhaanib~m @i} 244
! `}}t?))www,b~}voi{~lba,fic)b~}voi{~lba2)ckmhb,pca (abv} uhvh}km Ekn, >8! >42>,
5
 
 C{vhf % Fitx~hg`} 
! H
LEI^CB
]
KAKFICV
%
 
C
KMHB
!
 
6 (Cb~, >6! >422 (kv}hcb}hlg b 28,7+ c{vhf t{nahv`hlgcb~jk} v`b~k ei~ KCH blm b 2>,;+ cb~jk} v`b~k ei~ Vilx,
7
 
 Hm,
0
 
 Nhaanib~m @i} 244
! `}}t?))www,b~}voi{~lba,fic)b~}voi{~lba2)ckmhb,pca (abv} uhvh}km Ekn, >8! >42>,
8
 
 Hm,

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