The sale of EMI continues to cause waves in the world of music business with the latest development seeing the EU Commission allowing the Universal Music Group an extra two days to respond to the criticism that the sale would completely change the EU market dynamics.
The Universal Music Group is looking to buy the recorded music catalogue from EMI, a move that will see them expand to such a degree that they will be almost twice the size of her nearest rival if the sale is approved.
The European Commission has been assessing the massive deal since February and sent Universal a 194-page statement of objections sent last month, which the music giant had until July 3 to respond too. Reuters report that this has now been changed to July 5, meaning Universal now have until Thursday night local time to stand up for the $1.9 billion deal.
Allaying fears of regulators could be achieved in a number of ways, with Universal having the potential to offer to sell catalogues or offer their rivals better licensing deals. Universal had initially claimed that the threat of online piracy and the bargaining clout of the likes of iTunes and Amazon would stand in its way, but these arguments have reportedly been dismissed by the Commission.
