BRUSSELS, July 16, 2008 (AFP) - The European Commission banned on Wednesday societies that collect royalty fees for songwriters from restricting competition in Europe, breaking their national monopolies.

The commission forbid the 24 so-called collecting societies operating in Europe from preventing songwriters from moving to a rival and banned restrictions requiring them to operate only in their national territory.

Recognising the 'valuable role' that collecting societies play, Europe's antitrust watchdog said it was not fining them for thwarting competition.

The commission said that the decision, which has such societies up in arms, would give composers and lyricists new freedom to choose a collecting society based on their cost and quality of service.

It will also make it easier for music broadcasters to get a licence to play music over the internet, cable and satellite in several countries by going through a single collection society of their choice, according to the commission.

'This decision will benefit cultural diversity by encouraging collecting societies to offer composers and lyricists a better deal,' Competition Commissioner Neelie Kroes said in a statement.

'It will also facilitate the development of satellite, cable and internet broadcasting, giving listeners more choice and giving authors more potential revenue,' she added.

The CISAC international association of collecting societies blasted the decision saying the membership restrictions had largely already been dropped and the move on territorial monopolies would lead to fragmentation.

However, the association said in a statement that the worst part of the decision is that the commission presented the move as in songwriters' interest, which it said was not the case.

'Loudly and clearly -- but apparently to no avail, the creative community has told the commission that the community remains deeply concerned about a decision which claims to act in the name of creators but which in fact is being imposed on them against their express wishes,' it said.

'Time and time again, the creator has pleaded that the commission's proposed course of action will lead to a calamitous decline in artistic creation, cultural diversity and creators' income,' it added.