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Sun, May 5, 2024, 08:00
- The music tech giants must provide a response to concerns by Wednesday, May 8th.
A UK government watchdog is investigating AlphaTheta's 2023 acquisition of Serato, saying the deal "could substantially reduce competition in DJ software."
Launched in March by the Competition and Markets Authority (CMA), the probe found the merger may lead the music tech giants to consolidate the DJ software market (AlphaTheta is the parent company of Pioneer DJ). This could result in reduced competition and innovation for smaller hardware manufacturers, and increased prices and fewer choices for consumers.
"We've found this deal could substantially reduce competition in DJ software," said the CMA's executive director for mergers, Joel Bamford. "We're also concerned it could negatively impact the hardware markets by allowing the combined business to leverage Serato's leading software to harm its hardware competitors, ultimately affecting DJs and consumers."
AlphaTheta and Serato have been given five working days to provide a meaningful response to the CMA, otherwise the investigation will automatically move into phase two and become more in-depth.
The deadline is Wednesday, May 8th.
First announced last summer, the $100-million merger is also under investigation by the New Zealand Commerce Commission. Details of its investigation can be found on the NZCC case page.
Read the CMA's press release in full. We'll report more on this story as it unfolds.
Photo: Jonn Leffmann