European Commission probing Sony-BMG pact

BRUSSELS, March 2 (UPI) -- The European Commission said it is investigating the 2004 merger between Sony and BMG to find out whether the deal created a music recording monopoly.

The commission, the Brussels-based European Union's antitrust authority, said it should make a final decision this summer, Billboard reported Friday.

The inquiry will allow the commission to determine whether "the merger strengthens or creates a dominant position in these relatively concentrated markets," the panel said in a statement.

The deal is being re-examined eight months after the Court of First Instance -- EU's second highest court -- annulled the commission's original July 2004 decision to clear the merger, citing "manifest errors" in how officials examined the merger's possible impact. The 2004 merger created Sony BMG, the world's second largest record label behind Universal.

If the commission fails to clear it for a second time, the companies could be forced to split their three-year-old entity.

The commission has the authority to block the merger or demand changes to the merged company before granting approval.