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Indie labels call for investigation of Universal Music

Posted by aubin on Tuesday, October 2, 2007 at 8:00 PM (EDT)

Independent music labels in the United Kingdom have called for the Universal Music Group to be investigated for anti-competitive acts in their domination of the music industry. Currently, 55% of artists topping the charts in the UK are signed to the label or one of its many subsidiaries.

The action was precipitated by the label's acquisition of the UK arm of V2 Records, giving it control of artists like Bloc Party, The Black Lips and the catalogues of bands like At the Drive-In, Blood Brothers, Gang of Four and others. The label was purchased from Richard Branson for £7 million.

The instigators of the suit, The Association of Independent Music, has members of Ninja Tune Records, Beggars Group, Cooking Vinyl, Cherry Red and others on the board and is a non-profit representing independent labels in the UK.

Politics (16 comments)

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Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way. Seriously.

TheMike (October 2, 2007)

Acquisitions are common and legal business practices.

3+ Replies

douglas_is_rad (October 2, 2007)

not if they cause monopolies.

PretentiousLikePitchfork (October 2, 2007)

but monopolies are not...

though i know little to nothing about UK business law.

TheMike (October 2, 2007)

But this isn't a monopoly. At all.

MisFit4Me (October 2, 2007)

The thing is that it's getting close. One label has control of a majority. It's getting close to a monopoly, and the labels are trying to stop it. I know nothing about the UK and its labels though.

TheMike (October 2, 2007)

As long as there are indie labels with talented bands, Universal will not become a monopoly. Especially since people tend to like individual expression, with the rise in Universal's power, there will likely be an increase in indie labels. Think about it. A lot of bands aspire to own their own label, right? There are also lots of bands who don't want the stress of dealing with major labels. These bands will seek indies, and if they can't find any, they will start their own. And people will take notice.

BrixtonGunman (October 2, 2007)

the question isn't whether it's a monopoly or not, its whether or not Universal is using its size and wealth to interfere with free competition.

TheMike (October 2, 2007)

They purchased another label. Unless there was some form of unethical pressure behind the deal, it's a decision requiring the consent of both parties involved. So, they have the majority of the market share. That doesn't necessarily mean anything.

PretentiousLikePitchfork (October 2, 2007)

now that i go back to the original article, i don't think the investigation has anything to do with the acquisition of another label, the article states that the investigation was started after V2 was incorporated into Universal, not due to. this probably has more to do with payola and other unfair business practices than a possible monopoly. so i take back what i originally said.

then again, who knows. the article isn't exactly what one would call "in depth."

TheMike (October 2, 2007)

You're right. It will be interesting to see what happens. I'm just not entirely convinced that there are any illegal practices taking place. But I could be wrong, and will be the first to admit so should evidence turn up against Universal.

dontwantaname (October 2, 2007)

Richard Branson gets down w/ it or did.

1+ Reply

skankbook (October 2, 2007)

Richard Branson may go down as one of the smartest or one of the craziest motherfuckers to ever walk the face of the earth.

EyesLikeBombs (October 2, 2007)

Anybody know anything about a Japanese band called Etae? I heard one of their tracks, called something ridiculous...like...Don't Throw Away Maybe Start A Fight and it was great. I can't find any info on them on internets though, is this band actually any good or is that song just great?

housewrecker (October 2, 2007)

I'm very curious about how this turns out...

Holy_Balls (October 3, 2007)

At the Drive-In!

Dudley_Shale (October 3, 2007)

Go major labels!

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