C 253/12EN Official Journal of the European Communities 22.10.2002

Notification of a cooperation agreement

(Case COMP/C.2/38.118 PressPlay (formerly Duet) Case COMP/C.2/38.119 MusicNet) (2002/C 253/07)

(Text with EEA relevance)

1. In 2001, the Commission opened separate own initiative investigations into the above cooperation agreements.

2. On 1 October 2002, the Commission received from Sony Music Entertainment Inc. (Sony) and Universal Music Group (Universal) a notification pursuant to Articles 2 and 4 of Council Regulation No 17 ofagreements by which Sony and Universal enter into a partnership to formPressPlay. PressPlay is an online music company which may provide music over the Internet to subscribers throughout the world, excluding Japan. It is currently offering the service in the US. Under the notified agreements, PressPlay is formed for an initial period of five years though this may be renewed. During this period Sony and Universal have entered into non-exclusive content agreements with PressPlay, giving access to the Sony and Universal repertoires.

3. On 17 October 2002, the Commission received a notification from RealNetworks Inc.; Bertelsmann AG (through its wholly owned subsidiary Bertelsmann Inc.); EMI Group plc (through its wholly owned subsidiary Virgin Holdings Inc.); AOL Time Warner Inc. (through its wholly owned subsidiary Warner Music Group Inc.) pursuant to Articles 2 and 4 ofRegulation no 17. The notifiedagreements relate to the acquisition ofminority shareholdings in MusicNet Inc. by Bertelsmann Inc., Virgin Holdings Inc. and Warner Music Group Inc. MusikNet Inc. will offer a technology platform and a collection of music to distributors ofonline music services. The service is currently only available in the United States. Warner Music Group Inc., BMG Music, and Virgin Holdings Inc. have entered into non-exclusive content licence agreements with MusicNet Inc. giving MusicNet Inc. access to a significant amount of repertoire.

4. Upon preliminary examination, the Commission finds that each of the notified cooperation agreements could fall within the scope of Regulation No 17.

5. The Commission invites interested third parties to submit their observations on one or both ofthe proposed operations.

6. Observations must reach the Commission not later than 20 days following the date of this publication. Observations can be sent under reference number COMP/C.2/38.118 PressPlay and/or COMP/C.2/38.119 MusicNet by fax (No (32-2) 295 01 28 or by post to:

European Commission Directorate-General for Competition Office J-70 0/18 B-1049 Brussels.