Bertelsmann confirms receipt of expected statement of objections

BRUSSELS, Belgium (Sony announcement) - Bertelsmann AG confirmed on Monday that the company has received the European Commission's Statement of Objections concerning the proposed recorded music joint venture between BMG and Sony Music Entertainment. The Statement of Objections is part of the Phase II investigation process begun by the European Commission in February 2004.

The Statement of Objections documents the European Commission's remaining concerns about the proposed joint venture. It gives Bertelsmann the opportunity to understand the various issues that have been raised during the course of the European Commission's investigation and those that remain to be addressed in the latter part of the investigation.
Bertelsmann welcomes the clarity this step will give to the debate and remains confident about demonstrating, in addressing the remaining concerns, that the merger will not impede competition.

In December 2003, the international media company Bertelsmann and Sony Corporation signed a binding agreement to combine their recorded music businesses in a joint venture. It will not include the parent companies' businesses in music publishing, physical distribution and manufacturing. Sony Corporation's recorded music business in Japan, SMEJ, will also be excluded.