BRUSSELS, Belgium (CelebrityAccess) — EU antitrust regulators have formally opened an inquiry into Universal Music Group’s proposed acquisition of Downtown Music, according to a European Commission filing published Tuesday.
The deal, reportedly valued at $775 million, would see UMG’s Virgin Music Group acquire Downtown Music Holdings, a leading service provider to the global music industry. Originally launched in 2007 as a music publishing company, Downtown has since expanded to offer a wide range of services including music creation, distribution, publishing, marketing, royalty collection, financing, accounting, and payment infrastructure.
Downtown operates in more than 20 offices across six continents, with its business structured around four core areas: Artist & Label Services, Distribution, Royalties & Financial Services, and Music Publishing. Its portfolio includes well-known subsidiaries such as FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing, and Songtrust.
Although the deal did not initially trigger an automatic EU-level merger review—due to not meeting EU-wide turnover thresholds—the governments of Austria and the Netherlands invoked Article 22 of the EU Merger Regulation, requesting that the Commission examine the transaction due to its potential impact on competition within their national markets.
The proposed acquisition has sparked opposition from Europe’s independent music community. IMPALA, a trade body representing independent labels and music companies, warned that the deal would further entrench Universal’s dominance in key digital markets and reduce competition.
“We welcomed the news last month that the EC had decided to investigate, and we have been keen to see the assessment get started—so this is great news,” said Helen Smith, Executive Chair of IMPALA. “There is only one outcome to prevent harm, and that is for the EC to block this outright, to secure balance, harmony, and diversity in the ecosystem.”
The Commission will make a decision in matter on July 22nd.
