Universal's "creeping dominance" of the UK music sector must be investigated, the UK's independent music labels say.

Trade body AIM made the claim in a submission to the Office of Fair Trading concerning Universal's recent takeover of Richard Branson's V2 label.

The $14m V2 deal saw Paul Weller and Stereophonics move to Universal.

"We are satisfied the V2 acquisition is pro-competitive, and our voluntary filing with the Office of Fair Trading reflects this," said Universal.

AIM says Universal's takeover of V2 will further marginalise independents, stifle competition and limit consumer choice.

Growing market

Universal, the world's biggest music group, now has a roster of burgeoning UK talent including Kate Nash, the Kaiser Chiefs and Mercury Music prize winners The Klaxons.

However, AIM also pointed to Vivendi-owned Universal's recent £44.5m takeover of struggling UK music group Sanctuary as further evidence of its dominance in the music sector.

Last week, Universal Music enjoyed a 55% market share of UK artist album sales , while AIM - which has 800 members - says its current retail market share is around 20%.

As a result smaller labels are getting restricted access to radio, TV and other outlets, AIM added.