Antitrust Law Daily Wrap Up, ANTITRUST NEWS: CMA launches review of undertakings given by Performing Right Society, (Nov 24, 2015)

By Michael Menzhuber, J.D., LL.M.

The U.K. Competition and Markets Authority (CMA) is launching a review of undertakings given by the Performing Right Society (PRS) following a competition investigation in 1995/1996. The CMA determined that there were grounds to review the PRS undertakings due to: (1) to internal changes made by the PRS; (2) legislative changes, including the forthcoming implementation of a new European Union (EU) Directive covering collective rights management; and (3) wider changes in the music industry, including the growth of online and digital music.

The PRS, one of the two main collecting societies for music in the U.K., licenses musical works and administers the royalties when they are played in public or are broadcast. Following a Monopolies and Mergers Commission (MMC) investigation, the PRS gave undertakings in 1997 that allowed its members to administer their own live performing rights, as well as to make other commitments over its corporate governance and provide information to the CMA’s predecessor, the Office of Fair Trading.

The decision to review the undertakings follows a CMA consultation in July which had sought views on whether to carry out reviews of 13 sets of market and monopoly remedies that had been put in place by the CMA’s predecessors prior to 2005. This consultation formed part of the CMA’s commitment, set out in its 2015/16 annual plan, to commence a systematic review of existing merger, market and monopoly remedies.

This review will only consider whether there are changes of circumstances relevant to the undertakings such that they should be varied, released or retained. It will not examine wider issues relating to the PRS or performing rights in general.

The CMA expects to publish an issues statement for consultation next month which will set out the main areas of focus in this work and will provide details of the administrative timetable, including a deadline for submission of comments to the CMA.

News: Antitrust