House Subcommittee Wades Into the Universal-EMI Deal

The Universal Music Group’s proposed $1.9 billion takeover of EMI Music, already under close scrutiny by regulators in the United States and Europe, is facing additional pressure from a subcommittee in the House of Representatives.

The top Republican and Democrat on the House Judiciary Subcommittee on Intellectual Property, Competition and the Internet sent a letter to executives at Universal and two other major labels, asking pointed questions about how the merger would affect competition in the music industry. The House letter, signed by Rep Robert W. Goodlatte (R-VA), chairman of the subcommittee, and Rep Melvin L. Watt (D-CA), the ranking minority member, takes a tack similar to one taken at a Senate subcommittee hearing in June, asking whether the music industry “has unique characteristics that may increase or reduce concerns” about the merger; how competition and innovation in digital music would be affected by the deal; and whether piracy and “powerful buyers, like Apple” would constrain Universal’s added power.