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WHY WE DON'T NEED EC INQUIRY.

Music Week

| February 03, 2001 | Scott, Ajax | COPYRIGHT 2001 UBM Information Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

It is easy to see why the EC officials are sometimes accused of behaving like a bunch of meddling bureaucrats.

Just weeks after effectively rejecting the merger of EMI and Warner Music and just days before they may be requested to review the proposed union of BMG and EMI, they are at it again. This time it is that old chestnut of monopolistic CD price-fixing.

What's clear at this stage is that little is yet clear about this latest inquiry.

There appear to be at least two explanations for the appearance of the story in last Friday's FT: either it was a deliberate leak timed to coincide with the submission of the EMI-BMG merger; or it slipped out prematurely before any decision to launch an investigation had been taken. But even at this stage there are a few key points worth emphasising:

* Despite what consumer groups and the mainstream press suggest, pricing is a genuinely complex subject. Local price differences exist because of a host of factors including fluctuating exchange ...

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