(CelebrityAccess) — Following Friday’s news that the United Kingdom’s Competition & Markets Authority has provisionally approved Sony’s bid to acquire label services company AWAL from Kobalt, Europe’s indie sector has its doubts.
Helen Smith, head of IMPALA, said: “It’s a provisional set of findings, so we will comment in time for the CMA’s deadline of 4 March, with their final decision due later in March. We remain concerned that this acquisition will have a negative effect on competition and of course for artists, independent music companies and consumers.”
“We will read the CMA’s arguments with care and will consult our members again to get their views on the specific rationale applied by the regulator, so we can provide as useful input as possible. The case also highlights the need for the independent sector to have options when it comes to accessing finance,” she added.
In a separate statement, provided to Musically.com, AIM CEO Paul Pacifico said: “Whilst the CMA has ruled that AWAL’s acquisition is not enough to substantially reduce competition by itself, it is part of a pattern that threatens to gradually erode competition and diversity in UK music if independent entrepreneurs continue without much-needed access to capital. Sony arguing that even a hugely successful independent like AWAL would have struggled to maintain its position alone highlights the sector’s need for better support to scale-up.”
While the CMA has provisionally approved the deal, they have invited stakeholders to share their views with an eye towards granting final approval for the acquisition on March 17th.
