UK competition regulator will not conduct full music streaming probe

The decision was announced in a statement released this week. It follows the CMA’s market study, which commenced on 27 January, and comes after a UK parliamentary inquiry into streaming economics last year. This is a “proposal”, the CMA said, with the final decision to be taken on 19 August.

The study was purposed to determine whether the market has been functioning efficiently, whereas a full-blown investigation would assume a more in-depth approach towards fixing any potential dysfunctionalities within the industry. 

“We consider that any competition interventions are unlikely to drive significant improvements to artist and consumer outcomes, such as to justify a [full market investigation],” the CMA said.

Among the CMA’s reasons for not launching a full investigation is the assertion that music listeners are not negatively impacted by the current structure of the music industry.

British Phonographic Industry boss Geoff Taylor welcomed the decision. “We welcome the CMA’s preliminary findings, which have concluded that the streaming market is competitive, providing artists with more ways to release their music and fans with more choice and value than ever before.

“We and our many and varied record label members are focused on investing in British artists, building their global fanbases and sustaining the continued success of British music,” he said.

Hipgnosis founder and CEO Merck Mercuriadis said the decision was not commensurate with the findings of the CMA’s market study. “[...] with 70% of all those responding to the CMA consultation calling for reform, it is regrettable that the CMA is not minded to investigate and address the clear failures its study identified,” Mercuriadis said.

Following the decision not to investigate, the regulator will continue its market study with an expected deadline to report its final findings on 26 January. The regulator plans to take the findings to the Intellectual Property Office, which is undertaking its own research into the UK music market.

Read the CMA’s update report here and executive summary here.