Brussels - The European Commission has cleared Sony's (NYSE: SNE) proposed $1.2 billion acquisition of Bertelsmann's 50% stake in their joint record label venture, Sony BMG, concluding that "the transaction would not significantly impede effective competition." The Commission said it did not find concern with Sony BMG and Sony/ATV's potential control of joint licensing of publishing and recording rights to online music retailers, nor with Sony's consumer electronics business, which makes music-related devices like MP3 players and mobile phones.

Under the terms of the deal, announced in August, Bertelsmann will also take over selected European music catalog rights from Sony BMG.

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