EU investigation into Sony BMG merger

The European Commission said on Thursday that it has opened an probe into the planned music merger between Sony and BMG, a division of the German publisher Bertelsmann. After a routine, one-month review, the Commission has decided to investigate whether the deal might "create or strengthen a collective dominant position" in the global music market, a statement from the Commission said. In addition to reviewing each company's individual strengths, the commission wants to examine the combined power the deal would give all the remaining "record majors." If it goes ahead, the deal would reduce the number of major record labels to four from five, leaving Universal Records, Sony BMG, Warner and EMI.