Collecting societies warned about breaking competition rules

The European Commission warned the 16 different organisations in Europe that collect the royalties on behalf of music-authors that they may be breaking EU competition rules. The collecting societies have closed a pan-European pact in the Santiago agreement, whereby each national organisation functions as the only shop for all European music licenses.

“The structure put in place by the parties to the Santiago agreement results in commercial users being limited in their choice to the monopolistic collecting society established in their own member state,” the commission said.

If there was more competition between the societies, both music download providers and users would profit, according to the Commission.

The collecting societies have two and a half months to reply to the Commission’s objections. They can also request a hearing at which it would be able to submit their arguments directly to the representatives of the national competition authorities.

European Commission warns music royalty collecting societies (03.05.2004)
http://europa.eu.int/rapid/start/cgi/guesten.ksh?p_action.gettxt=gt&doc=IP/04/586|0|RAPID&lg=EN&display=