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The department's review of the matter had been
closely watched since scrapping the 1941 consent agreements
could upend the business of licensing music to online companies
like Spotify and Pandora as well as movie companies,
commercials, bars and restaurants.
Without the decrees, companies of any size seeking to play music
would have to negotiate rights in a chaotic transition while
also facing the prospect of price hikes, said the MIC Coalition,
whose members include the Brewers Association and National
Restaurant Association.
Makan Delrahim, the head of the Justice Department's Antitrust
Division who steps down next week, said in speech that the
"investigation period" was closing.
"The ASCAP and BMI consent decrees should be reviewed every five
years, to assess whether the decrees continue to achieve their
objective to protect competition and whether modifications to
the decrees are appropriate in light of changes in technology
and the music industry," Delrahim added in a speech to
Vanderbilt Law School.
ASCAP and BMI said they were disappointed by the government's
decision to formally close its review with no action taken. "The
formal close of this review means we can put this matter behind
us for the near future," added ASCAP Chief Executive Elizabeth
Matthews and BMI CEO Mike O'Neill in a joint statement.
The Digital Media Association, which represents Amazon.com Inc,
Pandora and Spotify among others, welcomed the department's
decision to maintain the status quo, at least for now.
"Music licensing is complex, but throughout their existence the
decrees' protections have fostered an efficient marketplace that
in turn has been critical to the resurgence and growth of the
music industry," said the group's president, Garrett Levin, in a
statement.
(Reporting by Diane Bartz in Washington; Editing by Andrea Ricci
and Matthew Lewis)
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