EU Opens In-Depth Investigation Into UMG Downtown $775M Deal

The European Commission has launched an in-depth Phase II investigation into Universal Music Group's (UMG) proposed $775 million acquisition of Downtown Music Holdings, citing concerns that the deal could reduce competition in the European Economic Area by giving UMG access to rival record labels' commercially sensitive data. The Commission is also worried that the acquisition might remove an important competitive force from the market for artist and label services. This extended review, which could last up to 90 working days until November 26, 2025, follows an initial Phase I investigation and is part of the EU's effort to prevent market concentration that might impede competition. UMG's Virgin Music Group, which agreed to the deal in December 2024, remains confident the combination will enhance offerings in the competitive label services sector and has criticized opposition from a small fraction of independent labels. Independent music groups like IMPALA have welcomed the Commission's detailed inquiry amid concerns about UMG's growing market power following previous acquisitions. The investigation reflects broader regulatory scrutiny over UMG's expanding influence in the music industry.