Government ministers in Britain have referred the case of the market dominance of major record labels to the Competition and Markets Authority (CMA).
The Digital, Culture, Media and Sport Committee report on the economics of streaming previously warned that “pitiful returns” from the current system are impacting the “entire creative ecosystem.”
It stated some successful and critically acclaimed musicians are seeing “meagre returns” from their work and non-featured performers on songs are being “frozen out altogether.”
The report also raised “deep concerns” about the position of the major music companies in the market.
Major record labels Sony Music, Warner Music, and Universal Music appeared before MPs during the sessions, while tech giants Spotify, Amazon, Apple, and YouTube also gave evidence.
Responding to the recommendations of the committee, the British government has referred the case to the CMA.
The government response stated, “The CMA is an independent regulator.
“There may be value in a market study, but it is for the CMA to decide how best to use its resources to deliver its objectives in making markets work well for consumers and businesses.
“We have written to the CMA on this recommendation.”
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