EU regulators to clear Sony BMG merger: report
(BRUSSELS) - EU antitrust regulators are poised to approve again the merger that created the music giant Sony BMG without conditions, the Financial Times newspaper reported Monday.
The European Commission has until October 10 to rule on the deal, but it is probably too late for regulators either to block it or demand conditions for its go-ahead, the British newspaper reported without citing its sources.
A Commission spokeswoman declined to comment, but a lawyer familiar with case but not working on it said it seemed likely the deal would be approved since regulators had so far not raised any new objections.
"Realistically, there couldn't be any time for a statement of objections now," the lawyer said. "Everybody is definitely assuming that (the deal) will get cleared and get cleared without conditions."
After first approving the merger in July 2004, the Commission has had to reopen an antitrust review of the deal after the EU's second-highest court found that the regulators' initial ruling was flawed.
After the court's embarrassing decision against the Commission, regulators are eager to make sure that their second ruling on the merger is watertight.
The independent producers' association Impala successfully appealed against the original approval of the deal on grounds that consolidation in the music publishing industry had given the music majors a stranglehold on CD prices and artists' contractual terms.
A source close to Impala said it would be "catastrophic and scandalous" if the Commission approved the deal again and that it was possible the association would lodge a new appeal.
Headquartered in New York City and owned 50/50 by Sony and Bertelsmann, Sony BMG counts stars ranging from ACDC to ZZ Top, as well as Bruce Springsteen, Oasis and Placido Domingo.
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