Over the past three months, the CMA has been conducting a preliminary review of the British music business to define the exact scope of its inquiry. On Thursday , the regulator, which exists independently to the U.K. government, announced that its focus will be on how well the streaming market is working for consumers, “paying particular attention to the roles played by record labels and music streaming services.
Failure to provide evidence or intentionally obstruct the CMA’s inquiry can result in financial penalties. It is a criminal offence for a person to intentionally alter, suppress or destroy any document which they have been required by the regulator to produce. “A vibrant and competitive music streaming market not only serves the interests of fans and creators but helps support a diverse and dynamic sector,” said CMA chief executivein a statement. “As we examine this complex market, our thinking and conclusions will be guided by the evidence we receive.”
That led to a nine-month probe of the streaming music business by the Digital, Media, Culture and Sport Committee, which wrapped in July and concluded that the recorded music market is “being distorted” by the dominant market share enjoyed by the major labels.