Record labels not harming artists, review rules

RECORD giants Sony, Warner Music and Universal are not harming competition in the music industry or damaging artists, the competition regulator found, despite protests from musicians.

In a victory for music industry moguls such as Universal Music chief executive Sir Lucian Grainge, the Competition and Markets Authority (CMA) said it was not planning a crackdown on the recording and music streaming industry. The regulator said: “On balance, the CMA’S initial analysis indicates that the market is delivering good outcomes for consumers.”

Despite the three major record labels controlling 70pc of the UK market for music streaming, the watchdog found that the digitisation of music had been good for consumers, broadening access to music while keeping prices low. The concentration of the major labels was “not currently causing consumers harm,” the watchdog said.

The findings of the competition regulator are likely to disappoint musicians who have been pushing for more lucrative deals from labels and apps.

Musicians including Nile Rodgers, the guitarist, told MPS artists were “kept in the dark” over streaming revenues. The CMA said it would consult on its findings before publishing a full report.