The UK government has launched a probe into the music streaming market. The intent of the study by the Competition and Markets Authority department is to ascertain whether any particular platform has excessive power causing a negative impact.
Last summer a report by the Digital, Culture, Media and Sports Select Committee on the Economics of Music Streaming found that there were potentially damaging disparities in the industry, prompting the subsequent probe.
Thus, the CMA has announced that it will “examine the music streaming market, from creator to consumer, paying particular attention to the roles played by record labels and music streaming services”.
Ultimately, it aims to conclude “whether innovation is being stifled and if any firms hold excessive power” and improve listener experience and understanding.
The mission statement concludes: “While focussing on potential harm to consumers, the CMA will also assess whether any lack of competition between music companies could affect the musicians, singers and songwriters whose interests are intertwined with those of music lovers.”
The report hopes to ensure that a “vibrant and competitive music streaming market” is attainable in the UK and the industry is not stifled by a biased monopoly. The report, however, does not state how this would be amended if the results do show that the industry currently has a stronghold.