Amid widespread fiscal tumult and economic uncertainty, 25 organizations, including the Artist Rights Alliance (ARA), the Future of Music Coalition, and MoveOn, have sent a letter to Congress in support of the Pandemic Anti-Monopoly Act.
Addressed to Senate Minority Leader Chuck Schumer (D-NY) and House Majority Leader Nancy Pelosi (D-CA), the message voices approval of the Pandemic Anti-Monopoly Act, which has been introduced by Senator Elizabeth Warren (D-MA) and Representative Alexandria Ocasio-Cortez (D-NY). Further, the correspondence urges the Pandemic Anti-Monopoly Act’s addition to “the next COVID-19 relief package.”
After that, the letter explores the market impact of the coronavirus crisis, as well as the potential for the federal government’s multitrillion-dollar support initiatives to facilitate the “transfer of power to billionaires and big corporations” by enabling them to swiftly acquire struggling small- and medium-sized businesses for rock-bottom prices.
As the wide variety of signers suggests, the Pandemic Anti-Monopoly Act (PAMA) doesn’t solely apply to companies within the music and entertainment industries. According to Senator Warren’s website, if signed into law, PAMA would suspend all “risky mergers and acquisitions” until the Federal Trade Commission (FTC) unanimously approves them.
More specifically, PAMA would halt mergers and acquisitions involving companies with $100 million or more in market revenue, or “over $100 million in market capitalization,” as well as private-equity companies or hedge funds, among others. Finally, the legislation would afford the Federal Trade Commission and other antitrust organizations additional time to review suggested acquisitions and mergers.
The legislation and supportive letter come as many individuals and groups continue to analyze the full extent of the coronavirus’s impact on the economy – as well as the music industry landscape of tomorrow.
Late last month, for instance, Digital Music News was first to report that the Kingdom of Saudi Arabia had purchased a $500 million stake in leading concert-promotion company Live Nation.
And in a testament to the far-reaching changes that the music industry could experience because of the coronavirus pandemic, rumors pertaining to Saudi Arabia’s potential acquisition of Warner Music Group (WMG) are circulating presently.
At the time of this writing, neither Senator Schumer nor Representative Pelosi had publicly responded to the letter.