Vivendi's Universal Music has offered new concessions to European regulators in a bid to avoid formal charges against its proposed 1.63 billion euro ($2.18 billion) purchase of BMG Music Publishing, sources familiar with the case said on Wednesday.
The latest concessions to the European Commission are on top of big sell-offs offered earlier this month, which customers and competitors criticised as insufficient, the sources said. Universal's new proposal is to sell off its Rondor catalogue of artists, signed up through its British division, for licensing in the 30-nation European Economic Area, they said.
The deal would create the world's largest music publisher, and others in the music industry have expressed unease. Universal has already agreed to divest British portions of the Zomba, 19 and BBC catalogues, including hits by Britney Spears, 'N Synce and the Backstreet Boys, for licensing in the EEA.
The Commission has sent out a fresh questionnaire to customers and competitors about the latest concessions, but it is unclear whether the answers would be enough to stave off a formal Statement of Objections.
Such a statement would not necessarily be the end of the deal, but could force the parties to make further concessions. A Commission spokesman declined comment. A spokesman for Universal said: "We're continuing to work with the Commission." When Universal purchased Rondor in 2000, the catalogue world-wide included rights to Beach Boys hits like "California Girls" and "Good Vibrations", to Tom Petty's "American Girl" and Michael Jackson's "Thriller".
One issue of concern among a number of publishers has been that they were unable to gauge what significance the sell-offs would have, because their have no idea what portion of Universal and BMG's overall catalogue is included, the sources said.
The companies have not yet offered so-called "behavioural remedies" - promises to change specific business practices, they said. The Commission is due to make decide the case by June 1.
Music publishers have been increasingly coveted because they are shielded from some of the piracy issues that have rattled the recording industry in the Internet age of file-sharing.
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