The musical instruments and equipment sector is in the midst of competition investigations over suspected anti-competitive agreements.
The UK’s competition watchdog, the Competition and Markets Authority (CMA), are investigating the sector in accordance with Chapter I CA98 and Article 101 TFEU.
This massively profitable market sector has boomed in recent years. Now, under the microscope of UK competition regulators, we will find out if there is anything that the consumers need to be concerned about when it comes to competition within the market.
The investigation was opened in April this year, so we’re only at the early stages of the reviews into the sector, and the matter remains in its infancy. As such, there is not a great deal of information as to the nature of the parties involved, or what the timetable for investigations to be completed are.
Given the size and profitability of the market, it’s certainly one to keep a very close eye on.
The musical instruments and equipment sector has grown massively in recent years as the popularity of musical instruments and the increased affordability when it comes to entry-level brands and models has allowed for almost anyone to be able to pick up instruments and equipment at relatively low costs. That, and the accessibility of instruction and musical information about songs online, has allowed for the sector to grow exponentially with high-street brands and even supermarkets now selling low-cost instruments and equipment.
There is, of course, the massive online market for instruments and equipment as well.
But, what the CMA is interested in is whether there are any breaches of important competition laws within the musical instruments and equipment sector. Although there are no results or conclusions made at the moment, the CMA has decided that there is enough evidence to suggest an infringement of competition law; so much so that relevant parties have been corresponded with.
We will be monitoring the developments of the investigations in the future.
Image Source: https://pixabay.com/en/music-musical-instruments-base-756514/