By Staff Writer – July 24, 2025
The European Commission has launched a full-scale Phase II investigation into Universal Music Group’s (UMG) $775 million acquisition of Downtown Music Holdings. The deal, which was announced earlier this year through Virgin Music Group, has drawn criticism over concerns that it could weaken competition in the independent music sector across the EU.
The Commission is particularly worried about UMG gaining access to sensitive label and artist data via Downtown’s services like CD Baby, Songtrust, Downtown Music Publishing, Downtown Artist and Label Services and FUGA. Regulators say this could lead to anti-competitive behavior and tilt the playing field unfairly toward UMG.
If approved without changes, the acquisition would give UMG considerable control over music distribution and monetization tools used by independent artists and labels, a sector historically valued for its neutrality and openness.
Independent trade groups such as IMPALA and WIN have voiced sharp opposition, with over 200 executives signing a joint letter urging the EU to block the deal. "There’s a tipping point when big becomes too big," said IMPALA’s chair Helen Smith. "This deal could silence the diversity that independents bring to the industry."
Virgin Music Group has defended the acquisition, stating that the deal would ultimately benefit artists by improving infrastructure, not reducing choices. A spokesperson confirmed that UMG remains fully cooperative with regulators and still expects the transaction to close by late 2025.
The Commission now has up to 90 working days to conclude its investigation, with a potential deadline set for late November. The final verdict could result in unconditional approval, approval with remedies, or a full block which would send shockwaves through the global music industry.
Whether this becomes a defining antitrust case or a regulated approval, the outcome will set an important precedent for how music tech and rights companies can consolidate in the future.