After Investigating Google and Facebook, UK Competition and Markets Authority Now Aiming at Spotify and Apple Music

JAKARTA - Britain's competition regulator plans to launch a music streaming investigation to see if a sector dominated by platforms like Spotify and Apple is working for consumers.

The watchdog's announcement on Tuesday, October 19 follows a report from a UK parliamentary committee this year warning that the link between music majors and streaming platforms could hinder innovation in the sector.

The UK Competition and Markets Authority has taken an increasingly proactive role in digital market regulation, and investigations have been launched into Google, Facebook, and Apple in various parts of the ecosystem.

They will now turn their attention to music streaming which, in the UK, accounts for 80% of music consumption and is dominated by the likes of Spotify, Apple Music, Amazon and YouTube-owned Alphabet Inc.

"The UK has a love affair with music and is home to many of the world's most popular artists," said CMA Chief Executive Andrea Coscelli. "We want to do everything we can to ensure that the sector is competitive, thrives and works for the benefit of music lovers."

After being hit by piracy in the late 1990s, the music industry is moving towards an ad-supported or subscription-supported streaming model as a way to secure more sustainable revenue for the sector.

Official figures show that the global recorded music market rose 7.4% in 2020 to $21.6 billion, with a surge in demand for paid streaming services.

A UK report on the sector shows that there were a total of 139 billion audio streams in 2020. Despite the growth, artists have long complained that they are not getting their fair share of streaming platforms.

The UK parliamentary report also noted that the three major music companies, Universal, Sony, and Warner, also account for up to 75% of the UK record market and have close ties to streaming platforms, prompting them to question competition in the sector.

A market study is used to examine a sector and decide whether intervention is needed. Outcomes can include asking governments to change regulations, encouraging businesses to self-regulate, taking action against companies, and thorough and in-depth investigations.