UK Regulator Says Sony's Acquisition of AWAL Raises Competition Concerns

By Jaime Llinares Taboada

The U.K.'s Competition and Markets Authority said Tuesday that Sony Group Corp.'s acquisition of music distributor AWAL raises competition concerns.

The British regulator said its Phase 1 investigation found that, if the deal hadn't gone ahead, Sony and AWAL could have competed more strongly against each other in the future, benefiting artists in their deals with distributors.

Sony has five working days to address the CMA's concerns and, if it fails to do so, the transaction will be referred for an in-depth Phase 2 investigation.

The Japanese entertainment and electronics company agreed to buy AWAL, Kobalt Music Group Ltd.'s businesses that distribute independent recording artists' music and manage rights, in February for $430 million.

Write to Jaime Llinares Taboada at [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

09-07-21 0729ET