EU To Object To Sony-BMG Deal; Digital Music An Issue

EU is about to issue formal objections to the planned merger of the music divisions of the Sony and Bertelsmann…The commission fears that the 50-50 JV between Sony Music and the Bertelsmann may leave too few large companies left to compete in the European market for recorded music.

It also suspects that Sony might abuse the connection between the group’s music arm and its technology division, which is in the process of introducing an online music download service called Sony Connect.