Law

A proposed merger involving music label Sony will be probed further after concerns about the deal were raised.

The Competition and Markets Authority (CMA) has referred Sony Music’s acquisition of AWAL and Kobalt Neighbouring Rights for an in-depth investigation.

The watchdog raised concerns over the merger last week, suggesting that Sony’s increased market share could worsen deals for artists.

The escalation suggests Sony did not respond to CMA’s initial findings within the five days granted.

An independent inquiry panel will now consider whether the merger has caused “a substantial lessening of competition within any market,” the CMA says.

Visual artists' rights manager DACS is celebrating a milestone: £100m distributed to artists.

Since resale rights were passed into law, the organisation has paid these royalties to 5,624 artists. The rights are payable on any secondary sales of works over €1,000.

However, more than half of all eligible sales are less than £5,000, meaning the right represents a vital source of income for lower-earning artists.

"In the current climate as artists face the myriad of challenges of the pandemic, many without the security of government support, that is more important than ever," DACS Chief Executive Gilane Tawadros said.

Two owners of a London flute shop have been banned from trading for the rest of the decade.

Fred Patrick Onn and Andrew Thomson admitted to allowing Top Wind to sell over 20 musical instruments owned by third parties after the retailer went bust in July 2019.

An Insolvency Service investigation found proceeds worth more than £33,000 were not passed onto the owners.

Top Wind entered into liquidation in March 2020 after its accountant was jailed for malpractice.

The Insolveny Service's ruling determined Onn and Thomson cannot become involved with the promotion, formation or management of a company for nine years.