Photo Credit: Universal + Downtown
EU antitrust regulators resume their investigation into UMG’s bid to acquire Downtown Music, with a new deadline of February 6 to reach a decision.
The European Commission has resumed its investigation into Universal Music Group’s (UMG) $775 million bid to acquire Downtown Music. The EU antitrust watchdog, which paused its investigation on September 2 while awaiting requested information, restarted the process on October 17.
A new deadline of February 6 has been set for them to reach their decision. Previously, the deadline was set for December 10.
The commission previously said the deal may hamper competition and remove an important industry player, which echoes concerns from independent labels that don’t want to acquisition to move forward. Organizations including IMPALA, IMPF, and AIM have been openly protesting UMG’s proposed acquisition over concerns that such a deal will broadly threaten the indie sector.
“This is another land grab,” said Independent Music Companies Association (IMPALA) executive chair Helen Smith. “We expect competition authorities in key jurisdictions to carry out thorough investigations and block these deals.”
Earlier this month, indie musicians, executives, and organizations launched the “100 Voices” campaign, featuring over 100 comments addressing the UMG-Downtown deal’s potential impact on the indie sector.
“If Downtown’s services fall under UMG’s control, we fear higher costs, reduced access, and the loss of independence that small labels like ours need to survive,” said signatory Bruno Roze, founder of I Love You Records. “This deal risks creating a music ecosystem where one corporation controls too much of the infrastructure, leaving less room for diversity, innovation, and fair competition.”
Meanwhile, UMG said the deal is “about offering independent music entrepreneurs access to world-class tools and support to help them succeed.” Additionally, a UMG spokesperson said the company was “confident that the commission will recognize the benefits of the transaction for artists, labels, and independent music in Europe, and clear the transaction.”
It remains to be seen how the European Commission will rule on the matter, and whether the indie sector has increased reason for concern.
