CMA launches probe into music streaming market
The competition watchdog has formally launched an investigation into the UK’s music streaming market.
The probe will assess all aspects of the market, from creator to consumer, but will pay particular attention to the roles played by both record labels and music streaming services such as Spotify.
The Competition and Markets Authority will also consider if innovation is being stifled, and if any companies hold excessive power, alongside any potential harm to consumers. According to the trade body the BPI, streaming now accounts for 83% of music consumption in the UK.
Andrea Coscelli, chief executive of the CMA, said: "A vibrant and competitive 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."
The probe is the latest in a number launched by the regulator into the use of technology, including Apple’s Appstore and Facebook’s use of ad data.
The CMA will now receive comments on any of the issues raised in the statement of scope from consumers, businesses and other interested parties. It has until October to publish a market study report, which will set out its findings and any action proposed.
The regulator first published a market study notice concerning the music streaming market last October, before officially launching the investigation on Thursday.