The Commerce Commission has received an application from Universal Music New Zealand Limited seeking clearance to acquire certain shares or assets in the recorded music business of EMI Music New Zealand Limited. The application relates to a global merger.

Universal Music is a global music recording company with operations in recorded music, music publishing, and other associated activities such as merchandising.

EMI is also a global music recording company and has similar operations to Universal Music.

The clearance application affects the wholesale supply and distribution of recorded music as well as the provision of "artist and repertoire" services. This involves the discovery, signing and promotion of artists.

In considering the application, the Commission's role is to determine whether the acquisition has the effect of substantially lessening competition in a market. A public version of the application is available on the Commission's website at http://www.comcom.govt.nz/clearances-register/detail/757

Background

Assessing an application for a merger or acquisition

When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.