(BRUSSELS) - Europe's highest court told a lower EU court on Thursday to rejudge the merger that created music giant Sony BMG after finding a first judgement in 2006 was riddled with errors.

The EU Court of First Instance ruled in July 2006 that the European Commission made errors in approving the merger in 2004 and ordered its antitrust regulators to reconsider the tie-up.

Subsequently, Sony and Bertelsmann, which own the joint venture on a 50:50 basis, appealed the decision to the European Court of Justice, although the commission once again gave its blessing to the joint venture in October 2007.

However, the European Court of Justice found in its judgement on the appeal that the lower court itself had made errors in annuling the commission's first take on the merger.

"The Court of First Instance committed errors of law in concluding that the commission's decision approving the joint venture was vitiated by manifest errors of assessment and was inadequately reasoned," the higher court ruled.

Considering that itself was not in a position to judge whether the merger should be allowed or not, the tribunal said: "It is accordingly referring the case back to the Court of First Instance."

Headquartered in New York City, Sony BMG counts stars ranging from ACDC to ZZ Top, as well as Bruce Springsteen, Oasis and Placido Domingo.

Judgment of the Court of Justice in Case C-413/06 P
Bertelsmann et Sony Corporation of America / Impala

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