U.K. OKs SONY AWAL DEAL

Sony’s acquisition of AWAL has been cleared by the U.K.’s Competition and Markets Authority following an in-depth inquiry after the body expressed competition concerns.

The CMA announced today that it has upheld findings that the deal does not substantially reduce competition in the U.K. and is not expected to do so in the future.

“We launched this inquiry as we wanted to be sure that this deal wouldn’t lead to worse outcomes for artists and fans,” said Margot Daly, Chair of the independent CMA Inquiry Group. “The music industry is vital to the U.K. economy and effective competition ensures that it works for everybody. Having carefully assessed the merger we found that it is not likely to affect competition in a way that will reduce the choice or quality of recorded music available or increase prices.”

The CMA’s inquiry focused on overlaps between Sony’s The Orchard and AWAL, assessing to what extent the two companies may be expected to compete to provide artist and label services. It also examined the competition between Sony and AWAL to sign successful artists and those with potential. It concluded that there’s enough outside competition for The Orchard and AWAL in the market, and the competition between Sony and AWAL was expected to continue “only on a limited basis.”