This article is more than 1 year old

Sony/BMG merger gets the nod

Regulators let it lie

The European Commission has approved the merger of Sony and BMG's respective music units.

Competition Commissioner Mario Monti gave the deal the nod despite complaints from other labels and smaller independents that a merger would reduce competition and lead to higher prices for consumers. There are no conditions attached to EC approval.

The new firm will account for 23 per cent of worldwide music sales, and one in three new releases in the US, according to Nielsen SoundScan. It still requires approval from the Federal Trade Commission in the US but that is expected within days.

The deal will leave 80 per cent of the market in the hands of the "big four" - Sony/BMG, Vivendi Universal, EMI and Warner. European regulators said they would keep an eye on the market and would "carefully scrutinise" any further consolidation. ®

Related stories

BMG to punt cheap, no-frills CDs
Sony - BMG wedding hit by EC spoiler
London council clamps down on Sony and BMG

More about

TIP US OFF

Send us news


Other stories you might like