So while Grainge and Faxon tried to tamp down the notion that the combined entity would be able to pick winners and losers among digital music services, and effectively dictate the licensing terms of its partnerships, critics warned that the departure of EMI from the marketplace would remove an important competitive force.

"If this merger's allowed, consumers and artists will be the losers," said Gigi Sohn, president of the digital-rights group Public Knowledge. "Removing a maverick competitor like EMI from the market will ensure that the remaining three players obtain more control over the future of online music."

in CIO's Government Drilldown.