The musical instruments and equipment investigation

First published by Author on December 20, 2019 in the following categories: Industry Investigations Latest and tagged with cma | competition law | investigations | musical instruments

The musical instruments and equipment investigation is a matter that’s currently being conducted by the Competition and Markets Authority (CMA).

The market for musical equipment and instruments has grown exponentially in recent decades. There’s now far greater access to instruments at more affordable prices, and the materials available online for people to learn to play are vast. So many youngsters want to be in bands, and it’s great that there’s such an appetite for musical creativity.

But the CMA has been looking into another side of the sector, and it’s one where foul play is being suspected.

About the musical instruments and equipment investigation

The CMA launched their musical instruments and equipment investigation back in April 2018.

The basis of the investigation is about suspected anti-competitive agreements, and last year saw an initial information-gathering phase as the regulator decided whether to take matters forward or not.

In March 2019, the decision was made to proceed with the investigation. As is usually the case, the CMA has made clear that no assumptions are to be made at present. The CMA can, of course, issue hefty fines where a breach is established.

When are results expected?

We are actually expecting to be hearing some updates in the musical instruments and equipment investigation soon.

The CMA had originally stated on their publications that a decision as to whether a formal statement of objections will be issued is due anytime soon. The date in the timeline had been set for winter 2019 as an estimate.

With Christmas literally around the corner, there will no doubt be a large number of people executing musical instruments and equipment to be gift-wrapped for them this festive season. If the CMA makes any determinations that important competition laws have been broken, such news may be hard to take if anyone has ended up paying over the odds for what they’ve bought.

Where a statement of objections is issued, it will be interesting to see the extent of this issue and exactly who is involved. The industry itself is huge, and it’s one we’ll be keeping a close eye on of course.