UMG Acquisition of Downtown Music is Approved by European Commission

After months of deliberation, the European Commission has officially ruled that Universal Music Group (UMG) can legally acquire Downtown Music Holdings. At this time, approval of the deal is conditional on UMG's divestment from Curve, Downtown’s royalty processing platform.

How it works:

• Curve will revert to being a separate business from the larger Downtown umbrella.

• The buyer for Curve must be approved by the European Commission.

• UMG committed to this stipulation in the larger deal back in December.

• UMG will acquire Downtown via its major subsidiary, Virgin Music Group.

• UMG purchased Downtown for $775 million.

Criticism:

• The independent music sector vociferously opposed the deal.

• IMPALA, a cohort of European independent music companies, stated that, “The acquisition would further entrench UMG’s position across European music markets, squeezing out competition, narrowing opportunities for independents and the artists they work with and allowing UMG to exercise more control over streaming services.”

What they said:

• Nat Pastor & JT Myers, Co-CEOs of Virgin Music Group: “Bringing Downtown’s exceptional team and capabilities to Virgin Music Group means greater flexibility and a sharper set of services for independent entrepreneurs, artists, and labels. By uniting two culturally compatible companies with deeply complementary strengths, we’re creating a more powerful, more open ecosystem that offers independent entrepreneurs the resources, investment, and technology to succeed on their own terms.”

• Pieter van Rijn, CEO of Downtown Music: “By joining forces with Virgin Music Group, we’re helping build a more diverse, dynamic, and opportunity-rich environment—one that amplifies independence and expands the cultural impact of the extraordinary partners we serve. We’re delighted to enter this next chapter of Downtown’s evolution and work closely with Nat, JT, and the wider Virgin team to continue championing independent music on a truly global scale.”