LONDON — U.K.’s competition watchdog fully cleared Sony’s acquisition of Kobalt Music Group’s independent distribution and label division AWAL on Wednesday (March 16), following an eight-month probe into the $430 million deal.

The Competition and Markets Authority (CMA) launched a merger inquiry into the deal last July, which it upgraded to a phase two in-depth investigation in September amid concerns that it could lead to worse terms for artists and consumers.

At the time, the CMA said it was concerned that the loss of competition between Sony and AWAL might make it harder for indie acts to strike favorable deals, potentially denying them the chance to gain greater ownership of their rights.

Last month, the CMA provisionally cleared the merger on the basis that “the deal does not substantially reduce competition in the U.K. and may not be expected to do so in the future.”

Following a three-week consultation period, during which both Sony and European independent labels body IMPALA filed written responses to the provisional findings, that decision has now been upheld.

“We launched this inquiry as we wanted to be sure that this deal wouldn’t lead to worse outcomes for artists and fans,” Margot Daly, chair of the independent CMA Inquiry Group, says in a statement. “Having carefully assessed the merger we found that it is not likely to affect competition in a way that will reduce the choice or quality of recorded music available or increase prices.”

As part of its investigation, the CMA analyzed a wide range of evidence, including thousands of internal documents from both firms, as well as submissions from competitors and customers, and the watchdog’s own analysis of the U.K. recorded music market.

Areas the regulator focused on included the extent to which AWAL and Sony’s indie distribution arm The Orchard may have been expected to compete, should the merger not go ahead, and how closely Sony and AWAL would compete to sign successful artists.

In its final report published Wednesday, the CMA concluded that The Orchard and AWAL were not close rivals due to their different areas of focus, with The Orchard specializing in label services and AWAL focusing on artist services.

The CMA determined that AWAL “would not have been likely to materially expand its label business within the next two to three years” and therefore not become a closer competitor to The Orchard in the provision of label services.

Regarding artists signings, the regulation watchdog found that there was “limited evidence” to indicate that AWAL Recordings was a significant competitor to Sony over artist signings and that AWAL “would not have materially improved its competitive offering” were the merger to not go ahead.

In a statement, Sony Music Entertainment welcomed the CMA’s final ruling, which it said would allow the company “to focus on offering the best service for their artists, in an intensely competitive market with multiple competitors and many offerings.”

“This is the start of an exciting new venture for Sony Music Entertainment, AWAL and Neighbouring Rights, and ensures we can continue to deliver real benefits for artists globally as the music industry continues to evolve,” said the major label.

Sony will earn an estimated $1 billion in revenue from distributing independent labels through its AWAL and The Orchard operations.