A PYMNTS Company

Universal Music’s $775 Million Deal Faces EU Antitrust Probe

By  |  July 22, 2025

Universal Music Group’s $775 million bid to acquire Downtown Music Holdings is now the subject of an in-depth investigation by the European Union’s competition watchdogs. According to Bloomberg, the European Commission expressed concerns that the deal could harm competition in the market for services provided to artists signed with independent labels.

    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.

    The European Commission raised alarms over the potential for Universal to gain access to sensitive data from rival labels, which could allow it to stifle competition in the sector. In its statement on Tuesday, the Commission warned that the deal could reduce the competitive forces in the market for artist and label services, potentially limiting options for musicians and labels outside of the UMG umbrella.

    “By acquiring Downtown, UMG would purchase a large provider of services for labels that compete with UMG and for artists,” said EU economy commissioner Valdis Dombrovskis, who is overseeing the probe in the absence of competition chief Teresa Ribera due to a conflict of interest. Dombrovskis highlighted that the investigation would help determine whether the deal would negatively impact artists, labels, and ultimately European consumers.

    The Commission has set a deadline of November 26 to either approve the acquisition with conditions or block it altogether. The review process places pressure on Universal Music to consider possible concessions to alleviate EU concerns. Such concessions could include divesting overlapping business units or offering behavioral commitments aimed at ensuring market fairness.

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

    Per Bloomberg, a spokesperson for Universal Music stated that the company would continue to cooperate with the Commission and seek to address what it described as the “willful misrepresentation of market data” by a small fraction of independent labels. Despite the investigation, the spokesperson affirmed that Universal’s timeline for completing the transaction remains unchanged.

    Downtown Music Holdings, originally founded as a music publishing company in 2007, has since broadened its portfolio to offer a wide range of services to independent artists. One of its key assets is the FUGA platform, which assists musicians in distributing their music on major streaming platforms like Spotify, Apple Music, and YouTube. Based in New York, Downtown also operates internationally, including offices across Europe.

    The ongoing investigation by the European Commission underscores the growing scrutiny of consolidation in the music industry, with regulators keen to ensure that artists and independent labels retain access to fair and competitive services.

    Source: Bloomberg