PRS clarifies scope of the CMA review
The Competition and Markets Authority (CMA) announced on 20 November that it will be reviewing the undertakings given by PRS to its predecessor, the Monopolies and Mergers Commission (MMC), in 1997.
The CMA’s decision to review the PRS’s undertakings is part of its wider review of the 76 existing market remedies that were put in place by the CMA’s predecessors prior to 2005, the key purpose of which is to reduce burdens on business by assessing whether any existing market remedies are no longer necessary. This systematic review forms part of the CMA’s Annual Plan for 2015/2016.
The CMA sought views on 13 market remedies in July, including PRS’s undertakings; and we responded to say that we supported and welcomed the review. Anyone involved in this industry will clearly recognise the extensive changes that have taken place over the last 20 years both in the external environment and within PRS – these changes have also been recognised by the CMA in their press release, which expressly refers to the online market and the implementation of the CRM Directive. We therefore agree with the CMA’s decision to assess whether our undertakings are still fit for purpose in this day and age, or whether it would be preferable to amend or remove any undertakings which are no longer deemed to be relevant or necessary.
The CMA is conducting a very targeted review of PRS’s activities: in its own words,
This review will only be considering whether there are changes of circumstances relevant to the undertakings such that they should be varied, released or retained - it is not examining wider issues relating to the PRS or performing rights in general.
PRS is not being investigated in any way by the CMA. We look forward to cooperating with and providing any assistance required to the CMA.
About PRS for Music
PRS for Music is a world-leading music collective management organisation representing the rights of more than 165,000 talented songwriters, composers and music publishers around the globe. Headquartered in the UK, it works diligently on behalf of its members to grow and protect the value of their rights. With a focus on innovation and integrity, PRS for Music is redefining the global standard for music royalties to ensure creators are paid whenever their musical compositions and songs are streamed, downloaded, broadcast, performed and played in public. In 2022, PRS for Music collected £964m and paid out £836.2m in royalties. prsformusic.com