NEW YORK (CelebrityAccess MediaWire) — When Sony & Bertelsmann Music Group merged in 2004, the union sent shock waves through the music industry and had the approval of the European Commission.
However, according to a Reuters report, the pairing of the two giant firms has come under closer scrutiny since. Last June, the second-highest court in the EU, The Court of First Instance annulled the merger, saying that the initial decision authorizing the merger had been insufficiently justified, leaving the fate of the combined company uncertain.
Unsurprisingly, Sony-BMG appealed the ruling to the European Court of Justice, the highest court, refiling their merger application. As a consequence, the commission has expressed its plans to launch an investigation and as a result, the court's decision could force changes or even put an end to the merger.
The indie record label trade group Impala has been one of the instigators of this reappraisal of the merger. "We have been contributing to the Commission’s investigation and will continue to do so, to ensure that the problems identified by the court are properly resolved. This is essential for artists and music fans alike." said Martin Mills (IMPALA Chairman.
The investigation is expected to take four months. – CelebrityAccess Staff Writers