(CelebrityAccess) — British anti-trust regulators, the Competition & Markets Authority announced it has formally opened a probe of the music streaming industry.
According to the CMA, the probe will be comprehensive and look at all aspects of the music streaming market, from creator to consumer, focusing in particular on the roles played by record labels and music streaming services.
As part of their assessment, the CMA will consider the impact of the current market on innovation and if excessive market power is centralized in any one area of the distribution chain.
The CMA will also seek to expand its understanding of how firms in the market influence listeners’ choices and experiences.
As well, the CMA plans to assess whether any lack of competition between music companies could affect the musicians, singers, and songwriters whose interests are intertwined with those of music fans.
“A vibrant and competitive music streaming market not only serves the interests of fans and creators but helps support a diverse and dynamic sector, which is of significant cultural and economic value to the UK.,” said Andrea Coscelli, Chief Executive of the CMA.
“As we examine this complex market, our thinking and conclusions will be guided by the evidence we receive,” she added.
The probe into music streaming is one of several ongoing efforts for the CMA in regard to the digital economy. The CMA is also looking at Google’s ‘privacy sandbox’, Facebook’s use of ad data and Apple’s AppStore
The CMA has also begun a market study of mobile ecosystems as well as launching the Digital Markets Unit in April 2021 – which is operating in a limited capacity pending legislation that will provide it with its full powers.
An independent CMA Inquiry Group is also separately investigating Sony’s completed acquisition of ‘artist and label’ services provider AWAL.
If the CMA finds problems, it will consider what action may be necessary.