It seems The EU Courts are no longer happy to ok the merger between Sony and BMG.
http://www.cnn.com/2006/BUSINESS/07/13/sony.bmg.reut/index.html?section=cnn_latestA European court annulled the European Union's approval of a 2004 merger between Sony Music and BMG in a surprise decision that could force a break-up of the world's second-biggest music company.
The unprecedented ruling by the European Court of First Instance on Thursday, upholding a challenge to the deal from independent record labels, also cast doubt on the viability of combining EMI Group and Warner Music, which are engaged in a duel to buy each other.
Warner's shares tumbled 15.2 percent to $25.24 on the New York Stock Exchange while EMI's closed down 9.2 percent at 277 3/4 pence in London.
The European Commission said it would have to re-examine the union of Sony and BMG, a 50-50 joint venture between Japanese electronics giant Sony Corp. and German media group Bertelsmann AG. It can also appeal against the ruling.
The decision means Sony Music and BMG, home to such artists as Bruce Springsteen and Kelly Clarkson, have seven days to submit the merger plan anew to the EC, which also would have to consider new industry conditions, including the rapidly growing market for online and mobile phone downloads.
The Commission would then have a month to decide whether to approve it, consider remedies or open a four-month in-depth probe, which could lead to a rejection of the deal.
The stakes are high at this sort of level, so we should expect a few words regarding the" catastrophic future" from those companies concerned, the real catastrophe is that the consumer and small independents have been paying for this sort of bad decision in the first place, increased competition is better for us all and having a few big Mafia style companies carving the market up between them was never helpful.
