More from the 'major label merger nonsense' file. According to the trusty financial press, the European Commission will make its formal objections to the proposed merger of BMG and Sony known to both parties tomorrow. The two majors will then have two weeks to respond to these objections - either countering the arguments or making concessions that alleviate concerns.
Insiders reckon that EU officials remain concerned over the implications of further consolidation of the music industry, and will have particular questions regarding the vertical integration of Sony's new digital music service Connect and how closely it will work with Sony's music operations. Others expect officials to make some demands regarding both major's publishing assets, even though those companies are not actually part of the merger proposals.
Once both majors have responded to the European Commission's concerns officials will make a final decision on whether to let the merger go ahead. That decision is expected on 25 Jul, though some reckon that deadline will not be reached. Bertelsmann chief Gunter Thielen told Bloomberg News last week that he expects the merger to get the go ahead with only "some changes in some countries" but admitted that another postponement of any decision might be in the works.