EU Opens Formal Sony BMG Probe

As expected, European regulators opened a formal probe today into Sony and BMG’s 2004 deal to merge their music units. EU officials say they need to thoroughly analyze the deal to check if the combined labels
would have a monopoly position. They have until July 1st to issue a ruling.

Regulators said they "will evaluate it using current market conditions…citing the growing sales of
online music…their investigation
would be to decide if the deal would create or strengthen a collective
monopoly among the major music recording companies".  The deliberations will also serve as an interesting background to the current dance between EMI and WMG.