Universal Music Group's response to the European Union's regulatory commission letter of objections to its proposed merger with EMI will require a response by July 3, according to a report today on Reuters.
The story cites a "person familiar with the matter."
EU regulators filed a 194-page letter of objections earlier this week which detailed its concerns regarding the nearly 40% market share Universal would have as a result of the merger. Although the letter has not been made public, it is presumed to contain concessions the music label will need to make in order to meet regulatory approval.
EC Competition Commissioner Joaquin Almunia has said that, "Ultimately, we will need to make sure that, in this already concentrated market, the company that would emerge from the deal would not be in a position to shape the future landscape in the digital music market to the detriment of users and artists."
Universal released a statement earlier this week when it formally received the EU letter stating they are "preparing a detailed response to the Commission's statement which will address the concerns outlined in this procedural document. We will continue to work closely with the Commission and look forward to securing regulatory clearance."
Yesterday the U.S. Senate Judiciary subcommittee held a hearing on the merger. Lucian Grainge, EMI Music CEO Roger Faxon and Live Nation executive chairman Irving Azoff testified in favor of the acquisition. Opposing the deal were Warner Music Group director Edgar Bronfman Jr., Beggars Group founder/chairman Martin Mills and Gigi Sohn of consumer group Public Knowledge.
The EU has a set a Sept. 6 deadline to rule on Universal-EMI bid.