The market for collective management of copyrights in the EU is in transition and the collecting societies are facing a number of challenges primarily based on the EU rules on competition and the freedom to provide services. Some of the major right holders are withdrawing their rights from the system of reciprocal representation agreements which fragments the repertoire. This is partly due to the market evolution and the emergence of new business models but also promoted by the European Commission initiatives intended to introduce a certain degree of competition in the collective management of copyrights. As a consequence, the objective of establishing a one-stop-shop in copyright licensing is not attainable. Furthermore, the efficiency gains from introducing a certain degree of competition between collecting societies are uncertain and possible gains from competition shall be balanced against the harms to cultural diversity. In addition to the competition law complications, the Services Directive puts significant restrictions on the member states to adopt or maintain national rules for collecting societies and that creates an urgent need for adopting a framework directive for collecting societies.