EU backs Sony’s Michael Jackson deal

Music giant’s $750 million deal will give it power over Beatles catalog.

EU antitrust regulators on Tuesday approved Sony’s acquisition of Michael Jackson’s 50 percent stake in a music publishing venture, giving Sony the copyrights of a library of songs, including those of the Beatles and Taylor Swift.

The European Commission said the move, which would see Sony buy the Jackson estate’s share in Sony/ATV for $750 million, would not hurt competition.

“The transaction will not materially increase Sony’s market power vis-a-vis digital music providers,” the Commission said in a statement.

Warner Music Group and independent music labels hoped the Commission would take a tough line because they feared it would give Sony too much muscle. The Independent Music Publishers Forum, which represents independent music publishers worldwide, said the deal would lead to a “concentration of catalog in the hands of Sony/ATV, a company which arguably holds some 30 percent of the music publishing market.”

Impala — the Independent Music Companies Association — told Music Week the EU’s decision was “clearly wrong.”

The association’s boss Helen Smith said the move “goes against the EU’s previous analysis of concentration in music, as well as the concerns raised during this market investigation … there is a fundamental flaw somewhere.”

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The deal awaits clearance from the U.S. Federal Trade Commission, which is expected to give a green light.