The independent music industry has called on the Office of Fair Trading to halt the acquisition by Universal Music of two companies, arguing that the recording giant already has a “creeping dominance” of the sector.

Universal Music, owned by Vivendi, of France, and home to Kanye West and Amy Winehouse, has agreed to acquire the struggling Sanctuary Music Group as well as V2, the label launched by Sir Richard Branson.

Universal, the world’s largest music company, secured a £44.5 million takeover of Sanctuary, whose management clients include Beyoncé and Sir Elton John, in a deal that includes £59.8 million of debt. The £7 million V2 deal adds Paul Weller and Stereophonics to Universal’s recording roster.

The Association of Independent Music said that the deals would “further marginalise a vibrant independent sector, serving to stifle competition and narrow consumer choice”. The body has submitted a response to an OFT inquiry into the V2 takeover.

Last week, Universal Music enjoyed a 55 per cent market share of British artist album sales. The independent body, which has 800 members, said that independent companies’ share of retail had declined from 40 per cent in the late 1980s to half that value now. The body argues that “indies” nurture the best new recording talent.

A spokesman for the Association of Independent Music said: “The Government should examine the relentless consolidation in the record industry, to achieve fair market access, so that competition is preserved and UK.”

Universal declined to comment.

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