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Sony Music’s Acquisition of Kobalt’s AWAL Raises U.K. Regulatory Concerns

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variety.com
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Jem Aswad Senior Music EditorThe U.K. regulator Competition and Markets Authority has raised concerns around Sony Music’s purchase of Kobalt’s recorded-music services division AWAL, after the first phase of its investigation into the acquisition.The investigation found that the distribution of recorded music in the U.K.

is currently “highly concentrated,” with the three major labels accounting for the majority of the market and the independent sector handling the remainder.

However, Sony calls the move “perplexing and based on an incorrect understanding” of AWAL’s role in the U.K. marketplace. Sources note that AWAL only recently became profitable after operating at a loss for 20 years.

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