Sony, Bertelsmann Apply to Merge Labels

Sony Corp. and Bertelsmann have filed a formal application with the European Commission to merge their recorded-music operations, starting the clock for regulators to review the deal.

The companies seek to combine their recording divisions into the world’s second-biggest music conglomerate. EC regulators now have about four weeks either to approve the merger or to call for a broader review that could last several months.

European regulators raised objections that ultimately sank two other music-business mergers in the last three years. But analysts say the industry’s poor condition may sway authorities to allow firms to seek cost savings through consolidation.