Deal could see DJs paying more to keep partygoers entertained
AlphaTheta바카라 사이트™s proposed deal to acquire Serato could also reduce innovation, choice, and access to DJ equipment and software.
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AlphaTheta Corporation (AlphaTheta) announced last year a deal to acquire Serato Audio Research Limited (Serato). AlphaTheta is involved in the manufacture of DJ equipment, including mixers, controllers, DJ players and all-in-one systems under the Pioneer DJ brand, and both parties are involved in developing DJ software.
After conducting an initial Phase 1 investigation, the CMA found that AlphaTheta and Serato compete closely to supply DJ software 바카라 사이트“ with the latter being seen as the market leader. The deal, if allowed, would create a supplier almost double the size of its nearest rival, consolidating the market and potentially impacting the price, quality, and innovation of DJ software. The CMA is concerned that the remaining (largely much smaller) suppliers would not provide strong enough competition to constrain AlphaTheta and Serato once combined.
The CMA also found that the deal could weaken competition in various DJ hardware markets by restricting or worsening AlphaTheta바카라 사이트™s rival DJ hardware manufacturers바카라 사이트™ access to Serato바카라 사이트™s software. Maintaining current levels of competition in all relevant DJ hardware types is particularly important given AlphaTheta바카라 사이트™s already strong position these markets.
The investigation also revealed concerns that AlphaTheta바카라 사이트™s DJ hardware competitors could be disincentivised to innovate or share information with Serato as this could then be used by the combined business in their own DJ hardware product development. Â Also, AlphaTheta could, after the deal is completed, reduce its own innovation efforts to stay only marginally ahead of its rivals.
Joel Bamford, Executive Director for Mergers at the CMA, said:
DJs and entertainers depend on having access to the best equipment and software in order to put on a good show.
We바카라 사이트™ve found this deal could substantially reduce competition in DJ software, resulting in increased prices, less innovation, and less choice.
We바카라 사이트™re also concerned it could negatively impact the hardware markets by allowing the combined business to leverage Serato바카라 사이트™s leading software to harm its hardware competitors, ultimately affecting DJs and consumers.
It바카라 사이트™s now up to AlphaTheta and Serato to address our concerns.
Both AlphaTheta and Serato have 5 working days to respond with meaningful solutions to the CMA, otherwise the deal will be referred to a more in-depth Phase 2 investigation.
More information can be found on the AlphaTheta / Serato case page.
Notes to editors:
- AlphaTheta is headquartered in Japan and sells DJ products 바카라 사이트“ primarily under their Pioneer DJ brand 바카라 사이트“ globally, including in the UK. Serato is headquartered in New Zealand and sells DJ software globally, including in the UK.
- The CMA launched its initial Phase 1 investigation in March. This 40 working day review is designed to identify whether the CMA considers that there is a realistic prospect that the deal would lead to a 바카라 사이트˜substantial lessening of competition바카라 사이트™ 바카라 사이트“ focusing on the potential impact on customers in the UK 바카라 사이트“ and therefore requires referral to a Phase 2 investigation.
- Phase 2 investigations allow an independent panel of experts to probe in more depth initial concerns identified at Phase 1.
- The merger is also under investigation by the New Zealand Commerce Commission. Details of their investigation can be found on the NZCC
- For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.