Vivendi Fixed Prices on Recording, Judge Says

Vivendi Universal’s recording units conspired with AOL Time Warner Inc.’s music group to fix prices on tapes and compact discs of the Three Tenors, a U.S. administrative law judge ruled.

The judge upheld Federal Trade Commission claims that Vivendi Universal’s recording and music divisions illegally set a two-month moratorium on discounts and advertising for earlier CDs, tapes and videotapes of Luciano Pavarotti, Jose Carreras and Placido Domingo to promote the 1998 recording of the Three Tenors.

James P. Timony, the FTC’s administrative law judge, directed Universal Music & Video Distribution Corp. and other Vivendi Universal music units, including PolyGram Holding Inc. and Decca Music Group Ltd., not to “fix, raise or stabilize prices or price levels” of any audio and video product, the FTC said. The music companies also were barred from placing limits on advertising of video or audio products.

Vivendi’s U.S. shares rose 65 cents to $21.50 on the NYSE.