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EU to Decide on Universal Music’s $775 Million Downtown Music Deal by Late July

By  |  June 17, 2025

The European Union’s competition watchdog is set to make a decision by July 22 on whether to approve Universal Music Group’s (UMG) proposed $775 million acquisition of Downtown Music Holdings, according to a filing released Tuesday by the European Commission.

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    Virgin Music Group, UMG’s global division for independent labels, first announced the agreement in December 2024. UMG, which represents chart-topping artists including Taylor Swift and Billie Eilish, is the world’s largest music label. Downtown Music, the acquisition target, provides services to more than 5,000 businesses and over four million creators in 145 countries. Its publishing portfolio includes music legends like John Lennon & Yoko Ono, George Gershwin, and Wu-Tang Clan.

    Per Reuters, the Commission may approve the acquisition either unconditionally or with specific conditions during its preliminary review. If concerns arise about reduced competition, the EU executive could initiate an in-depth four-month probe to further examine the deal’s implications.

    Industry analysts suggest that a comprehensive investigation is likely, citing the dominant position held by the major music labels in global markets. According to Reuters, concerns have mounted within Europe’s independent music community over UMG’s growing influence.

    Related: EU Investigates Universal Music’s Downtown Deal

    The proposed acquisition has drawn vocal opposition from Impala, the association representing Europe’s independent music companies. Impala argues that the deal would tighten UMG’s grip over the European music landscape, particularly in areas like music streaming, and diminish avenues for independent labels to thrive. The organization is urging regulators to block the transaction outright.

    UMG, meanwhile, has expressed confidence in the regulatory process. In a statement, the company affirmed its commitment to working closely with the European Commission and said it expects the transaction to close later this year, as originally planned.

    The debate around the deal has also attracted scrutiny from competition experts. Amelia Fletcher, a former chief economist at the UK’s competition authority, voiced her concerns in a letter dated June 12 to EU antitrust chief Teresa Ribera. In the correspondence, which was reviewed by Reuters, Fletcher warned that the acquisition could weaken the independent music ecosystem not only in Europe but globally, potentially reinforcing the market dominance of UMG and the other two major labels, Warner and Sony.

    Source: Reuters