BRUSSELS, July 13 (Xinhua) -- The EU's second-highest court on Thursday overturned the European Commission's approval of the merger of music businesses of Sony and BMG.

    The commission had failed to prove that the merger would not produce a new company that holds a monopoly position in the market, said the EU's Court of First Instance.

    "The Commission did not demonstrate to the requisite legal standard either the nonexistence of a collective dominant position before the concentration or the absence of a risk that such a position would be created as a result of the concentration," it said.

    The EC approved the merger of Sony's music business and Bertelsmann's BMG unit in July 2004 as evidence was insufficient to prove that the deal would harm consumers.

    However, the decision met challenges from the independent producers' association Impala, which argued that the merger would have a stranglehold on CD prices and artists' contractual terms.

    The merger has reduced the number of music majors in the world market from five to four -- Sony-BMG, Universal, Warner and EMI. Sony-BMG takes a lead in United States, while Universal holds the top spot in Europe. Enditem