AIM, the trade body which represents the UK’s network of independent labels, has moved to put pressure on the government to open a review into the proposed sale of EMI to Universal and Sony, Music Week reports.
In launching the campaign, AIM highlights the runaway success of Adele‘s 2011 album ‘21‘ as an example of what independent artists can still achieve in what it describes as ‘an already distorted market’, but warns that:
“Market distortion must not be allowed to become even greater. If the sale of EMI is allowed to go through, the combined market share in the recorded music market would be around 50% – 10% more than the threshold at which the OFT should be involved.”
“The increasing concentration of the music market in the hands of a decreasing number of gigantic multinationals has undoubtedly damaged competition. The proposed sale of EMI threatens further damage so great that it must be reviewed and resisted by the UK Coalition Government with the full support of the Opposition.”
The proposed acquisition of EMI by Universal, who agreed a deal for the recorded music division, and Sony who will receive the company’s publishing arm, was reported last November.