For the second time, the European Commission has cleared the creation of Sony BMG, a joint venture combining the recorded music businesses of Sony and Bertelsmann. The Commission had already cleared the transaction in 2004, but following an appeal by a third party, the Court of First Instance (CFI) annulled the Commission decision. This was the first time that the CFI had annulled a merger clearance decision. In light of the annulment, the Commission re-evaluated the transaction under the old Merger Regulation. In doing so, new market conditions were assessed, including the developments in the sales of online music. The outcome of the Commission’s investigation was that even if the transaction took place in a concentrated market, no collective dominance scenario would arise because the necessary conditions for collective dominance were not met.