LONDON (CelebrityAccess) — UK regulator The Competition and Markets Authority has provisionally signed off on Sony’s proposed acquisition of artist and label services provider AWAL.
The decision to provisionally approve the deal follows an in-depth inquiry into the effects of the proposed acquisition on the competitive aspects of the recorded music market.
According to the CMA, they do not expect the acquisition to “substantially reduce competition in the UK and may not be expected to do so in the future.”
The CMA’s inquiry focused on two potential areas of overlap with Sony’s other assets, including The Orchard. However, while AWAL may have eventually become a rival to The Orchard, the CMA determined that at present, they do not substantially compete and that there are many other vendors providing similar services in the market segment.
The CMA also found that many other firms have begun providing similar services which can be expected to make up for the limited loss of competition from AWAL
To make their determination, the CMA considered evidence from competitors and customers, as well as thousands of internal documents from Sony and AWAL, the organization said.
The CMA is asking for input on the provisional filings ahead of March 4th, 2022, and will assess all evidence provided before making a final decision. The statutory deadline for the CMA’s final report is 17 March 2022.
The members of the CMA’s inquiry group are Margot Daly (Chair), Paul Hughes, John Thanassoulis and Ashleye Gunn.
