Source: Australian Ministers for Regional Development
The ACCC has issued a draft determination proposing to authorise the Australasian Performing Right Association’s (APRA) musical works licensing arrangements for five years, subject to stronger conditions aimed at improving the association’s accountability and transparency.
APRA, a collecting society holding performing rights for virtually all musical works played or performed in Australia, has had arrangements authorised in some form for 26 years. APRA’s current authorisation is terminating, and APRA is seeking a further authorisation. As part of the process of considering a new authorisation, the ACCC has consulted widely with relevant stakeholders.
If renewed, the Authorisation would enable APRA to continue to act collectively for its member copyright holders, to issue licences and collect revenue from businesses in Australia that broadcast or utilise music in their businesses, and to distribute those royalties and fees to copyright holders.
APRA’s members and licensees told the ACCC that APRA lacks transparency in setting licence fees and in distributing royalties to its songwriter members, while the ACCC considers that the exclusivity of the Association’s arrangements significantly increases its market power.
“The only option for many businesses that rely on playing music, such as bars and broadcasters, is to obtain and pay for a licence from APRA,” ACCC Deputy Chair Mick Keogh said.
“As APRA is a near monopoly, there is a greater chance its arrangements could adversely impact these businesses, such as through higher licence fees. However, we also understand that it is more efficient for APRA members to collect royalties jointly, rather than having artists independently negotiate and collect royalties directly from each business that plays their music.”
“We also recognise that APRA’s arrangements protect the rights of creators, by ensuring that they are paid for the use of their music,” Mr Keogh said.
The conditions contained in the proposed authorisation aim to improve APRA’s accountability and transparency by requiring consultative reviews for new or amended schemes and arrangements.
“The conditions also seek to ensure that royalty payments reflect the way in which music is used, which supports incentives for future music creation,” Mr Keogh said.
Under the proposed authorisation, APRA will also be required to undertake periodic reviews of its licence schemes and distribution arrangements. The Association must also consider feedback received from stakeholders during the reviews.
“We know that the music industry is changing globally,” Mr Keogh said.
“Now most music is delivered to consumers by international online businesses, such as Spotify and YouTube Music, leading to structural changes in the way that music is licensed.”
“These new licensing models may open the door for more competition to APRA in at least some areas of its business,” Mr Keogh said.
“We are seeking more information on this from market participants, such as affected licensees, and will consider this in future authorisations.”
The ACCC is also seeking to introduce new measures to APRA’s Alternative Dispute Resolution (ADR) scheme to support the resolution of disputes between groups of members or licensees and APRA. The ACCC also proposes to clarify the range of matters that can be dealt with through the scheme, which will include disputes between APRA’s members.
While the ACCC does not have a role in regulating or approving APRA’s actions generally, it does have a role in authorising its arrangements where APRA acts on behalf of potential competitors and would otherwise risk breaching competition laws.
The ACCC is seeking submissions on its draft decision, including on the proposed conditions, by 16 February 2026.
Further information, including details about how to make a submission, and a copy of APRA’s application for reauthorisation, are available on the ACCC’s Public Register at Australasian Performing Right Association Limited.
Note to editors
Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.
Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Background
APRA was established in Australia in 1926 and has approximately 124,000 members, consisting of composers, songwriters and music publishers who give their copyrights to APRA.
APRA also has 145,000 licensees; businesses that pay a licence fee to APRA to perform in public or communicate musical works, such as cafes, retailers and broadcasters. APRA then distributes the licence fee revenue to its members, as royalties.
Historically, interested parties have consistently raised concerns about APRA’s conduct in relation to licence fees, the terms on which it distributes royalties, and its level of transparency in its dealing with licensees and members.
In its previous authorisation decisions, the ACCC sought to reduce likely public detriments by imposing conditions to increase APRA’s transparency as well as requiring it to maintain an ADR scheme. The ADR scheme provided a more accessible alternative to the Copyright Tribunal, particularly for small licensees.
On 6 February 2024, APRA lodged an application seeking authorisation of certain aspects of its activities as a collecting society for music copyright royalties. It was granted interim authorisation on 19 June 2024 to allow it to continue its arrangements for the acquisition and licensing of performing rights in musical works while the ACCC considers the current application.
The ACCC received more than 24 submissions on APRA’s current authorisation application, many of which raised concerns with the Association’s level of transparency and accountability, particularly with respect to setting and collecting licence fees and distributing royalties.