UK antitrust regulator will investigate the music streaming market

Today, the UK Competition and Market Authority (CMA) announced that it will conduct market research on music streaming as soon as possible, with the aim of expanding competition in the digital market. If the CMA decides that it needs to step in and take corrective measures, this development may have an impact on the future operations of music streaming media giants such as the mobile app store, Apple Music and Spotify in the UK.

This move was made after a report was released this summer. The report pointed out concerns about the economics of the music streaming media markets, such as the possible dominance of major music brands and contractual agreements between them and streaming media services that may stifle innovation. Last month, in response to this report, the British government asked the CMA to review the economic conditions of the market in order to explore issues related to transparency and fairness.

In a statement today, the chief executive officer of CMA stated that the UK has a soft spot for music and is home to many of the most popular artists in the world. CMA hopes to make every effort to ensure that this industry is competitive, thriving, and serves the interests of music lovers. In the past ten years, the development of the music industry is almost impossible to add. Now streaming media has accounted for more than 80% of all music listening in this country. A market study will help CMA understand these radical changes and consider whether competition in this industry is functioning well or whether further action is needed to manage it.

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Previously, it conducted research on the online advertising market, which led to a series of worrying issues, which seemed to provide a reference for the government to reshape the UK’s digital competition rules. It also stepped in and oversaw Google’s plan to phase out third-party tracking cookies, and obtained a promise from the tech giant on how its planned privacy sandbox alternative would work. This investigation is still ongoing.

Earlier this year, CMA also conducted a market survey on the dominance of Apple and Google in the mobile ecosystem. Apple’s app store is also under investigation by regulators. Spotify, a European music streaming competitor, has long complained that Apple’s terms and conditions are unfair. The relevant EU regulatory agencies have found some problems, so it is certain that CMA’s market research will also find some problems that need to be resolved.

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