Officals at the European Commission have giventhe go-ahead to the massive merger of Sony and BMG, the second- and fifth-largest record companies in the world respectively.
Both labels announced the confirmation yesterday. A statement from the Commission is expected today. The merger was strongly opposed by independent record labels around the world, but the deal has passed without any conditions.
The independent argument was that the new label, Sony BMG, would be too dominant a force in the marketplace, leading to price increases and a drop in consumer choice. European officals disagreed, and supported the major labels' claims that the merger was essential for them to survive.
Read the Financial Times indepth report here.