EU Pauses Probe Into UMG’s Acquisition of Downtown Music Holdings

The European Commission (EC) has halted its investigation into Universal Music Group’s (UMG) purchase of Downtown Music Holdings for $775 million. The probe is due to concerns that the merger will create unfair competition.

Background:

• EC is waiting on requested information from the parties under investigation.

• The proceedings were officially paused on September 2.

• The specific date is significant as it affects the deadline by which EC must deliver a final decision.

• The previous deadline was December 10. A new deadline will be set when EC restarts the investigation.

The deal:

• The idea of a major label purchasing one of the most prominent music services companies has sparked ire among the global music community.

• Over 200 high-level music professionals signed an open letter condemning the deal.

What they said:

• EC Spokesperson: “The 'clock' in merger investigations can be suspended if the parties fail to provide, in a timely fashion, an important piece of information that the Commission has requested from them (for its competition assessment) within a prescribed deadline."