U.K. Government Launches Competition Review Into PRS for Music
British government agency the Competitions and Market Authority (CMA) has launched a review into U.K. collection society PRS for Music.
British government agency the Competitions and Market Authority (CMA) has launched a review into U.K. collection society PRS for Music.
The investigation follows a CMA-led consultation in July, which sought views on a number of “market remedies” that were previously imposed by the Competitions and Market Authority’s predecessor — the Competition Commission (CC).
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Those measures were made following a Monopolies and Merges Commission (MMC) investigation in 1995/96, which found that — twenty years ago – tensions between writers and publishers across different music genres had “contributed to the development of a corporate organization and a way of working” described by the MMC as “cumbersome.” It also noted that PRS’ “policies and procedures were not sufficiently transparent.”
In response, PRS made a number of structural and organization changes the most significant of which was allowing members to self-administer their own live performing rights. Other undertakings included: altering the structure of the society’s appeals board; separating the organization’s chairman and chief executive roles and a simplified annual report that contained aggregated details of members’ overseas earnings.
Because those changes were made almost 20 years ago, the Competitions and Market Authority has decided to now review the remedies that PRS introduced to see if they are still appropriate or need to be amended or revoked. The CMA cites legislative changes, including the forthcoming implementation of a new EU Directive covering collective rights management and wider changes across the music industry over the past two decades, among the grounds for its review.
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The investigation will only consider these particular “undertakings” and is not examining any wider issues relating to PRS or performing rights.
“The CMA is looking into whether the undertakings given by PRS to the Monopolies and Mergers Commission almost over 20 years ago are still fit for purpose in this day and age… and, specifically, whether it would be preferable to amend or remove any such undertakings which are no longer deemed to be relevant or necessary,” confirmed a spokesperson for PRS. They added: “We welcome this review by the CMA and will provide any assistance required.”
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