EMI confident of EU clearance

EMI and Time Warner have offered the European Commission enough concessions to secure the future of the music merger, EMI said on Thursday.

Earlier this week, executives from the two companies met in Brussels with EU Competition Commissioner Mario Monti in a final attempt to save their proposed $20bn (£14bn) merger. It has been under investigation since June.

"The undertakings are a complete and practical response to the concerns raised and they go to the heart of the issues by removing the cause of the concerns, not merely the symptoms," an EMI spokesman said.

"The undertakings are therefore both innovative and aimed at enabling the parties to remove the Commission's concerns without materially harming the viability of the deal or removing the commercial viability of the deal," he added.

A decision on the proposals is expected from the EC on 4 October or 11 October, although the deadline is 18 October.

Cards on the table

EMI has yet to confirm what concessions it offered the EC.

The EC is concerned that the EMI/Time Warner tie-up would put 80% of Europe's recorded music business in the hands of four global giants

Speculation is that they offered to sell record labels in France, Denmark, Greece and Spain, as part of their efforts to secure the merger's future.

The companies also promised not to favour internet service providers linked to America Online, with which Time Warner is merging, for five years, according to reports.

They also pledged not to withdraw from the mechanical and performing rights collecting societies - the groups which collect royalties on behalf of artists - for five years.

But even if these concessions satisfy the EC, it does not totally ease competitors' fears.

"This really won't sort out the problems of collective dominance and is wholly unsatisfactory...It must be blocked," an official at a rival company said.

The EC also has a 24 October deadline to decide on the proposed merger of Time Warner with internet portal America Online (AOL), announced in January.

The Time Warner/AOL merger, if allowed, would create the world's biggest combined internet and media company.

US news

Earlier on Thursday, a report in the Washington Post suggested that the Federal Communications Commission (FCC) may approve the AOL/Time Warner merger if it agrees to conditions on internet access.

Approval hinges on the companies' promise to allow cable customers to freely choose their internet service provider.

However, so far officials at the FCC have declined to confirm the story.

The two companies also need to secure approval of the merger from the Federal Trade Commission (FTC) in the US.

The FTC is concerned that the high-speed cable systems Time Warner is rolling out across the US, which will give access to 20% of the population, might be made available only to AOL subscribers.