New EC Probe To Investigate Sony/BMG Merger
The European Commission has launched a fresh probe into the 2004 merger of Sony Music and BMG the EC’s second probe into the deal. It approved the merger in July 2004, but that was annulled by the European Court of First Instance last summer following an appeal by independent music labels saying it was stifling competition and new talent.
The Court of First Instance ruled that the first inquiry had involved only an “extremely cursory examination” of the potential impact of the joint venture. The commission has until July 4 to make a decision. Depending on its findings, the commission could ask for changes to the terms of the Sony/BMG pact or even block it.
The Future: Don’t the Europeans have enough “nap-time” – this is a waste of time, money, and our patience. The about face of IMPALA regarding the proposed merger between EMI/Warner shows that they’re easily bribed. You approved the deal, now stick with it…who do you think you are, France? Oh, wait a sec, nevermind…