SonyBMG Move Given The Go-Ahead At Last

Music giants Sony Music and BMG have again today received the green light for their proposed merger through European competition officials after a previous legal ruling outlawed the move which was first completed worldwide some three years ago.

The merger was first completed in 2004, making Sony BMG the world’s second largest music company. However after a legal ruling from within the EU stipulating it was anti-competitive the deal ran into problems, until the favourable ruling delivered today allowed the merger to go ahead as planned within the European Union.

The European Commission competition authorities have for the second time agreed to allow the move to go through, despite a prior court ruling that the same move would be unlawful on the basis of competition within the market.

The judge today ruled that the merger would not give the company a ‘dominant’ position within the market, mainly down to the widespread domination of other massive music companies like Universal, Warner Music and EMI records.

The investigation was prompted by complaints from a number of small independent music labels, which felt that their position and standing within the music market was significantly undermined by the merger which saw SonyBMG dramatically increase its market share.

However on the basis of the current arrangement the court were more than happy to allow the move to continue as previously, cementing SonyBMG as a major player in the music industry.

Along with its other three major rivals it makes up ‘the big four’ of the music industry, which jointly command an 80% market share of music sales worldwide.

SonyBMG currently holds the rights to the music of Elvis, Christina Aguilera, Bruce Springsteen amongst their raft of megastar musicians. The move will allow the company to continue to strengthen its holding in the music business.

Story link: SonyBMG Move Given The Go-Ahead At Last