UMG-EMI Merger: Deja Vu All Over Again

[Commentary] I will be testifying against the merger of Universal Music Group (UMG) and EMI Music. A merger between the 1st and 4th largest record companies, in our opinion, would result in a “super-major” label with a 41% market share that would be able to dictate the future of new digital music services. The combined entity could deny licenses to new services, charge them enormous licensing rates, or even take an equity stake in the service. This would be bad for consumers, who benefit from lower prices and more choice in a world with more new services and fewer middlemen. And as our friends at the Future of Music Coalition have so artfully said, these new services also benefit both independent music labels and unsigned artists. Sound familiar? Indeed, the merger looks a lot like the failed merger of AT&T and T-Mobile.