Indie labels want UK government to stop EMI sale

A number of UK-based independent record labels have urged the government to stop the proposed sale of EMI.

AIM, the trade body for Britain's independent record companies, has launched a campaign to get the planned sale and break-up of EMI between Universal and Sony to be reviewed by the UK government.

The organisation has sent letters to its members highlighting the successes of independent labels over the past month - which includes XL Recordings' Adele - who will then forward them to their local MPs, reports Music Week.

The letters argues that there is an "already distorted market" and that the gap between the major companies and the independent businesses must not increase.

It reads: "Market distortion must not be allowed to become even greater. If the sale of EMI is allowed to go through, the combined market share in the recorded music market would be around 50% - 10% more than the threshold at which the OFT should be involved.

"The increasing concentration of the music market in the hands of a decreasing number of gigantic multinationals has undoubtedly damaged competition.

"The proposed sale of EMI threatens further damage so great that it must be reviewed and resisted by the UK Coalition Government with the full support of the Opposition."

It continues: "The move will will undoubtedly concentrate the global music market still further into the hands of two dominant major companies - Universal and Sony.

"That itself is enough to demand that the UK Government looks closely at and opposes the proposed sale of the only UK major music company to the remaining gigantic multinational, whose monopolistic position has already been a cause of market decline."

The request also highlights the troubles Warner Music will face, saying that it "will effectively be relegated in size to a position where it can offer no real competition, and the global music market will be in the control of just two huge companies - one French and one Japanese."

Universal Music confirmed that it had acquired EMI's recorded division for £1.2bn in November.