The European Commission unconditionally approved a merger between record companies Sony Music and BMG but warned on Tuesday that it would look closely at any further proposed consolidation in the industry.

The deal creates a rival to market leader Universal Music and shrinks the number of music majors to four companies from five. Vivendi-owned Universal and Sony BMG, as the new company is to be called, account for about 46 percent of music sold worldwide.

“The Commission will keep a close watch on the music sector as it becomes even more concentrated and would very carefully scrutinize any further major concentration in the industry,” EC officials said in a statement. [more @ www.reuters.com]

Posted Tuesday, July 20th, 2004 at 8:36 pm
Filed Under Category: Music Business
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