EU Commission Resumes Review of Universal’s Downtown Deal

The EU’s competition regulator has re-started its investigation into Universal Music Group’s (UMG) proposed acquisition of Downtown Music.

Timeline:

• In December 2024 UMG’s Virgin Music Group announced it had agreed to buy Downtown Music Holdings LLC in a $775 million deal.

• In April the European Commission announced it was preparing to investigate the deal.

• In July it opened an in-depth (Phase 2) inquiry.

• The inquiry was paused on 2 September as the Commission requested information from the parties under investigation.

• It resumed on October 17.

• A new deadline of February 6 has been set for their decision.

Opposition:

• The proposed takeover has been met with opposition by parts of the independent sector, which has launched initiatives such as the 100 Voices campaign.

• In July Virgin Music’s Co-CEOs responded to the “falsehoods” over the deal.

What they said:

• A UMG spokesperson: “We are continuing to work constructively with the European Commission. We are confident that the Commission will recognize the benefits of the transaction for artists, labels, and independent music in Europe, and clear the transaction in a timely manner.”