On Monday 24 November, the European Commission took the view that the planned acquisition of the US music rights management company Downtown by the major Universal Music Group (UMG) risked reducing competition in the music industry.
The Commission has issued a statement of objections concerning UMG’s proposed acquisition of Downtown, a formal step in an investigation.
The Commission, which launched an in-depth investigation in July to determine whether to authorise or block the takeover, explained that the deal would give UMG access to sensitive data about rival record companies (see EUROPE 13686/16).
Downtown, which manages the repertoires and rights of millions of artists and rights holders, handles commercially sensitive information belonging to the world’s leading labels on a daily basis.
In addition, the proposed transaction could restrict competition in the services provided to artists and labels in Europe, the Commission points out.
The Commission now has until 6 February to decide whether or not to authorise the acquisition of Downtown. In the meantime, UMG will be able to respond formally to its objections.
In December 2024, UMG announced that its subsidiary Virgin Music Group wanted to acquire Downtown for $775 million, or around €737 million. At the time, the Group hoped to finalise the deal before the end of 2025, subject to obtaining the necessary authorisations. (Original version in French by Lionel Changeur)