Universal’s £1.2bn acquisition of EMI Music has been approved by the Australian Competition and Consumer Commission without objection.
The ACCC said that the deal would be unlikely to substantially lessen competition in the Australian market and that barriers to entry did not appear high for new, small-scale, independent record companies.
It also said that the proposed acquisition would be unlikely to substantially lessen competition in digtial recorded music. The potential for Universal to become a gatekeeper to the digital market following the EMI deal has been one of the main concerns for opposition of the deal.
Universal said in a statement: “We are pleased that the Australian Competition and Consumer Commission has cleared Universal Music’s proposed acquisition of EMI with no objections.
“This follows similar clearances in Japan, Canada and New Zealand. Our investment in EMI will create more opportunities for new and established artists, expand music output and consumer choice, and support new digital services. We welcome the Commission’s decision and are working closely with regulators in Europe and in the US to obtain further clearances.”