Private equity giant TPG and its portfolio company Musixmatch have been ordered to face an antitrust lawsuit brought by Canadian rival LyricFind, after a US judge ruled there was sufficient evidence to proceed on key claims, according to a report by Reuters.
The case, filed in San Francisco federal court, alleges that Italy-based Musixmatch and TPG conspired to push LyricFind out of the market through exclusionary practices, including an exclusive licensing agreement with Warner Chappell Music. LyricFind claims this arrangement unfairly blocked its access to Warner’s catalogue and allowed Musixmatch to charge inflated fees to streaming platforms such as Spotify, Amazon and YouTube Music.
In its complaint, LyricFind accused TPG and Musixmatch of pursuing a “buy-or-bury” strategy in 2023 after TPG explored acquiring the company. US District Judge Jacqueline Scott Corley rejected TPG’s argument that, as an investment firm, it should not be implicated, noting that LyricFind had presented enough evidence at this stage to show TPG coordinated in the allegedly anticompetitive conduct.
While some contractual claims were dismissed, the bulk of the antitrust allegations remain intact. Musixmatch has denied wrongdoing, calling the order a preliminary step based solely on allegations, and expressed confidence it would ultimately prevail. TPG has declined to comment.
The next hearing is set for 22 October.
