ACCC continues exemption to APRA arrangements for music rights

The ACCC has issued a final determination continuing the exemption from certain competition laws for arrangements used by the Australasian Performing Right Association (APRA) to acquire and license performing rights in musical works, subject to conditions.

APRA is a music rights organisation that licenses businesses that play music, including cafes, retailers and broadcasters, and distributes licence fee revenue to songwriters, composers and music publishers as royalties.

ACCC authorisation is required because APRA’s arrangements involve coordination between potential competitors that may otherwise risk breaching Australia’s competition laws.

The ACCC has no role in developing, administering or enforcing the APRA arrangements.

“This was a complex decision because APRA has substantial market power, which can create risks for music users and members, including around licence fees, royalty distributions and transparency,” ACCC Commissioner Dr Philip Williams said.

“The ACCC found APRA’s arrangements are still likely to deliver public benefits by making it easier and more efficient for music users to obtain licences and for songwriters, composers and publishers to receive royalties.”

The ACCC has granted authorisation for five years, subject to conditions aimed at increasing transparency and accountability in how APRA operates.

The existing conditions have been largely retained. In addition, the revised conditions require APRA to:

“The conditions are designed to reduce the likely public detriments by requiring regular reviews of APRA’s arrangements and giving members and licensees clearer opportunities to provide feedback and raise concerns,” Dr Williams said.