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At the same time, the unusual terms of the deal require Universal to pay EMI owner Citigroup almost the full purchase price whether or not the acquisition is approved. This appears to give regulators on both sides of the Atlantic enormous leverage in seeking concessions. The EU and the FTC are expected to conclude their reviews of the process in early September—right around the time Universal is due to pay Citigroup $1.7 billion.

Universal still expects the deal to go through, a spokesman said in an e-mailed statement. “We appreciate the points raised in the joint letter from Chairman Kohl and ranking member Lee, as well as the committee’s recognition of the historic changes in the music industry over the past decade. Since this deal was announced, we have worked closely with the Federal Trade Commission to address many of these issues, and will continue to do so.”

Read:Bank Of America Begins To Remove ATMS Across The Country

As a former label employee, I might add that the ship has sailed on music company competition. Many of my friends who are still in the business have said  labels remind you bombed cities. Shells of empty homes that hold great memories. While it’s easy to write off these utterances as the whining of out-of-touch curmudgeons who already made a ton of money in the music business, you can’t pretend they don’t have a valid point.  There’s no denying that online culture has put an end to what most of us would consider the “traditional” music business – the one that’s more or less been in place since music first hit the shelves.

What will happen to the music industry?

Senators Warn Universal Music & EMI Deal Destroys Competition  was originally published on elev8.com

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