Image source: AWAL

Asian Tech Press (SEP 17) -- The U.K.'s Competition and Markets Authority (CMA) said it. The CMA says that AWAL could have competed more fiercely with Sony if the acquisition had not taken place, given the current high concentration of wholesale recordings in the U.K.

The CMA's senior director is concerned that the deal could worsen the treatment of artists and lead to less innovation across the industry. The CMA will investigate Sony Music Entertainment's (SME) acquisition of London independent record label AWAL.

Earlier in the year, Sony Music Entertainment reached an agreement with Kobalt Music Group to buy AWAL.

On Sept. 7, regulators gave Sony five days to address its concerns, or an in-depth investigation would be launched. Sony Music called the CMA's decision "baffling" at the time and said they didn't quite understand AWAL's status in the U.K.