A PYMNTS Company

EU Set to Launch Full Antitrust Probe Into Virgin Music’s $775 Million Downtown Deal

By  |  July 16, 2025

European regulators are preparing to open a full-scale investigation into Virgin Music Group’s $775 million bid to acquire Downtown Music, citing concerns that the deal could reduce competition in the European music market, according to Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Virgin Music Group, a division of Universal Music Group — the world’s largest music company — announced the acquisition in December 2024. The move quickly drew backlash from numerous independent music organizations across Europe, worried about increasing industry consolidation. Per Reuters, Virgin Music had until July 15 to propose solutions to ease the European Commission’s antitrust concerns, but failed to do so, as reflected in a recent update on the Commission’s website.

    The European Commission, which oversees competition matters within the EU, has yet to publicly comment on the matter. However, Reuters reports that the Commission is expected to begin a four-month in-depth investigation following the conclusion of its preliminary review on July 22. The decision to escalate the inquiry underscores the growing scrutiny of major industry mergers, especially in sectors where independent players are voicing fears over market access and dominance.

    Related: Canada’s LyricFind Accuses US Rival Musixmatch and TPG of Market Suppression

    A spokesperson for Virgin Music declined to comment on the launch of a formal investigation, stating only that the Commission has not made a final decision. The company remains committed to working collaboratively with regulators and addressing what it called “wilful misrepresentation of market data by self-interested parties,” according to Reuters. Virgin Music also said it still anticipates the deal will close in the second half of 2025.

    Downtown Music is a significant force in the global music landscape, operating a prominent music publishing arm and offering services that help artists collect royalties. Its acquisition would give Universal Music a broader reach across various facets of the music value chain.

    Several independent music groups, including Impala, the European Composer and Songwriter Alliance (ECSA), and the Worldwide Independent Network, have urged the European Commission to scrutinize — and potentially block — the transaction. These organizations argue that the deal would solidify Universal’s grip on the market, making it harder for independent labels to compete on equal footing.

    Source: Reuters