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1. Comment - European Union Could Split Sony BMG

   (Jul 13, 2006 - 8:20 PM)

   Please correct me if I'm wrong but this is what I understand.
   
   1. The original merger was approved by the European Union (which seems to also be called the European Commission)
   
   2. The challenge to the EU's approval went to the European COURT - a different animal - whose role includes acting as a watchdog for decisions made by the EU
   
   3. After a ridiculously lengthy court process the EC decided the approval given by the EU two years ago is VOID. The merger is no longer valid.
   
   4. So now, Sony/BMG have two avenues.
   (a) they lodge an appeal with the European Court against the Court's decision. The EU is not involved at this stage at all. If Sony/BMG win it's all over for the Indies and S/BMG continue on their merry way.
   
   (b) If they lose the appeal they will then have to go back to the EU and do the approval application all over again. This time the EU will have to look at their arguments in TODAYS market (which won't be good for Sony/BMG) and will be forced to address the issues more completely. If they dont it could be voided again.
   
   So its not the EU deciding to approve and then deciding not to. It's the European Court annulling the EU's slack decision. There were 2 different bodies involved.
   
   So is the Sony/BMG merger currently invalid? How does that work? They are in a bit of a pickle LOL