Senate Antitrust Committee to Review Merger of Sony Music, BMG

Authored by Mark Hefflinger on November 11, 2003 - 7:56am.

Washington -- The U.S. Senate Antitrust Subcommittee has announced that it plans to review the recently announced merger proposal between Sony Music and Bertelsmann Music Group, which would reduce the number of major record labels in the world from five to four. The hearing was announced by committee chair Sen. Mike DeWine (R-Ohio) and ranking Democrat Sen. Herb Kohl (D-Wisc.). "The deal between Sony and Bertelsmann to combine their music businesses represents even further consolidation in an industry in which only five major firms compete," the senators said in a statement. "While we recognize that the music industry currently faces numerous problems, greater consolidation may not be the answer to those problems." Time Warner is also reportedly in talks to sell its record label business to fellow major EMI, which would further consolidate the shrinking global music business.
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