The Association Of Independent Music is due to object to Universal Music's previously reported acquisition of V2 in a submission to the Office Of Fair Trading this week. As previously reported, Universal announced it was buying the UK division of V2 off bank Morgan Stanley in August. As also previously reported, Morgan Stanley bought the Virgin Group out of Richard Branson's second record label last year.
Responding to Universal's latest acquisition, AIM will today claim that the V2 purchase will stifle competition and narrow consumer choice. According to the Daily Telegraph, the industry body will say that Universal already commands too much control over the music radio and retail sectors because of its dominance, and that further expansion will worsen this situation.
Their submission to the OFT says: "The tying up of radio-play and music TV slots, retail space, online visibility and advertising [by the big majors] makes it harder for independents to compete and enables consumers to see and hear less music through these key channels".
The paper quotes AIM chief Alison Wenham as saying: "The music industry is not a commodities industry, it is a cultural industry. The OFT is right to look at this because the whole market is suffering from the dominance of one company. This country needs to nurture its creative industries, which are going to replace the manufacturing base".
AIM and Wenham's opposition to the Universal deal contradict comments made at Popkomm last month by indie label chief Mike Batt, who owns Dramatico Records and is also Deputy Chairman of the UK's other main record label trade body the BPI. He called on majors and indies to work together, observing in relation to another of Universal's recent takeovers - of the Sancutary Music Group - that: "Companies buy each other. It's just trade. There's nothing wrong with that".