LONDON (CelebrityAccess) — The United Kingdom’s Competition & Markets Authority announced it plans to move ahead with a probe of the music streaming industry.
As of yet, the scope and other details of the study are currently under consideration, but the CMA said it plans to launch the market study as soon as possible.
The CMA uses market studies to identify potential areas of regulatory interest and consider if and how to address any competitive and consumer-oriented issues.
While the study itself does not usually lead to regulatory rulings, they can lead to a range of outcomes, including making recommendations for new regulations from the government, and recommending consumer or competition law enforcement action against firms against businesses in relevant sectors.
Market studies can also lead to so called ‘phase 2’ market investigations which involve closer scrutiny from the CMA.
The CMA’s market study into streaming markets follows the publication of a report by the DCMS Select Committee in July that evaluated the economics of streaming and identified several areas of potential concerns, including transparency, market dominance of major players in the sector, and what the committee characterized as low remuneration paid to musicians and performers.
In announcing the CMA’s market study, CMA Chief Executive Andrea Coscelli said: “The UK has a love affair with music and is home to many of the world’s most popular artists. We want to do everything we can to ensure that this sector is competitive, thriving and works in the interests of music lovers.”
“Over the past decade, the music industry has evolved almost beyond recognition, with streaming now accounting for more than 80% of all music listened to in this country. A market study will help us to understand these radical changes and build a view as to whether competition in this sector is working well or whether further action needs to be taken,” she added.