BRUSSELS, Belgium (CelebrityAccess) — The European Commission will investigate Universal Music Group’s $775 million bid for Downtown Music Holdings over potential anti-competition concerns in the recorded music industry.
On Friday, the European Commission announced that it had accepted a request from Austria and the Netherlands to assess the acquisition and its impact on the independent music sector.
Although the proposed transaction does not meet the EU’s turnover thresholds for mandatory anti-competition inquiries, the Commission stated that the acquisition “affects trade within the Single Market and threatens to significantly affect competition within the territory of the Member State(s) making the request.”
“The Commission has therefore concluded that it is best placed to examine the transaction. The Commission has asked UMG to notify the transaction. UMG cannot implement the transaction before notifying and obtaining clearance from the Commission,” a spokesperson said.
Virgin Music, a division of Universal Music, announced plans to acquire Downtown Music Holdings in December, stating that the deal is expected to close in the second half of 2025.
Downtown Music Holdings is one of the largest independent music publishers, representing more than 50 million songs across over 145 countries on six continents. In addition to music publishing and administration, Downtown offers distribution, artist and label services, and royalty and financial services to independent labels and artists.
News of the inquiry was welcomed by Europe’s independent recorded music community. Helen Smith, executive chair of IMPALA, a trade group for Europe’s independent labels, said: “We welcome this news and stand ready to collaborate fully with the European Commission throughout its assessment of the merger.”
Downtown did not immediately respond to a request for comment.
