October 3, 2007 14:14

Major record label merger given OK by inquiry

SonyBMG can continue as one company

Major label giants Sony Music and BMG, who merged in 2004, have been given the all clear to continue as one company, after doubts had risen about whether the merger would constitute a monopoly in the music industry.

A new inquiry has deemed that the merger does "not create or strengthen a dominant position in the music markets".

Last year Impala, an organisation representing 2,500 indie record labels, complained and called for the merger to be scrutinised. But after the new inquiry the label has been given the go-ahead to continue operating as it was.