The European Court of Justice (ECJ) has annulled the Court of First Instance (CFI) ruling that the European Commission improperly approved the creation of a joint venture by Bertelsmann AG and Sony, known as Sony BMG, in 2004. The CFI annulled the Commission’s 2004 decision on the basis of inadequate reasoning and manifest errors of assessment, following an appeal from a competitor. Although the Commission approved the joint venture again in 2007, Bertelsmann and Sony appealed the CFI’s ruling. Among other things, the ECJ annulled the CFI decision because the CFI had misconstrued legal criteria applicable to collective dominance and tacit coordination and had misused documents in its analysis, including the Statement of Objections, as well as certain confidential documents. Nevertheless, the ECJ affirmed that Commission decisions approving concentrations may be annulled on the basis of inadequate reasoning, rejecting arguments advanced by Bertelsmann and Sony.