European Comission to Investigate Universal Planned Acquisition of Downtown

In an important decision, the European Commission has decided to investigate the proposed acquisition of Downtown by UMG, stating that “…the transaction threatens to significantly affect competition in certain markets of the music value chain…”.

WIN is committed to ensuring a fair and competitive market and joins IMPALA in welcoming the decision. We hope this will encourage regulators in other regions to take the same approach and launch investigations to block the deal.

This decision is a crucial step to preserve competition in the music ecosystem, not only in Europe, but worldwide. It sends a clear signal: Universal’s pattern of serial acquisitions must be stopped and examined. We welcome this regulatory assessment to ensure that any potential acquisitions do not harm the diversity and innovation that independents bring to the music industry, and we encourage other regulators around the world to take similar action.
Noemí Planas, WIN CEO

IMPALA issued the following statement:

IMPALA welcomes European Commission’s scrutiny of acquisition of Downtown by Universal Music Group

Brussels, 25th April 2025

IMPALA, the European association of independent music companies, welcomes the European Commission’s decision to investigate the proposed merger between Universal Music Group (UMG) and Downtown Music Holdings, home to companies such as Fuga, CD Baby, Songtrust, Curve, AdRev, as well as other key businesses in the music sector.

The European Commission says it has decided to investigate because it is best placed due to the impact in many member states, noting that “…the transaction threatens to significantly affect competition in certain markets of the music value chain…”

IMPALA agrees that the deal poses serious competition threats that are incompatible with the functioning of the internal market. 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. The impact would hit both consumers, who risk facing higher prices, as well as independent labels and artists and other parts of the music sector. Concentration in services markets is something regulators take very seriously as they understand the impact that it has on the ecosystem and of course the bargaining power of the market leader.

This deal is part of a wave of acquisitions by UMG, including the acquisitions of PIAS, Downtown, and 8Ball Music within just a few months, and there are more concluded already or in the pipeline in key markets, with two more this week already. IMPALA has been calling on regulators to stop what it sees as UMG’s ‘juggernaut’ strategy of serial acquisitions rolling up strategic businesses and pushing its streaming agenda onto DSPs.

Considering market developments since the EC stripped UMG back in 2012, and all the evidence available today, we believe the EC is likely to conclude that the maximum it already set, which may have seemed reasonable to some, would now be considered lenient as IMPALA argued at the time and that remedies just don’t work in the modern music market. This is of course about much more than market shares but the figures IMPALA has seen show that UMG’s market share is already way over what the European Commission assesses as excessive, with shares particularly high across Europe and in key countries, even before Downtown and PIAS are added.

IMPALA is committed to ensuring a fair and competitive market where balance is essential and believes this acquisition must be stopped. 

We welcome this news and stand ready to collaborate fully with the European Commission throughout its assessment of the merger. The scale of disruption across Europe means it’s right for the EU to do the assessment. This follows concerns raised by both regulators who were notified by UMG and Downtown at national level. Like any sector, the music market needs big companies of course, as we already flagged, there is simply a point at which big is too big. In this case, UMG clearly exceeded the maximum even before adding Downtown. This deal must be blocked entirely.
Helen Smith, IMPALA Executive Chair

This deal has far-reaching implications not only for record labels but also for music publishers, distributors, and other sectors. It’s the kind of acquisition behaviour that raises immediate red flags for any regulator. We urge the European Commission to conduct a thorough investigation and take decisive action to prevent further consolidation that could harm consumers as well as competition, diversity, and innovation across the music ecosystem.
Francesca Trainini, IMPALA President and Vice President of Italian association PMI

The music sector is a fundamental priority for Europe’s economy, with enormous untapped potential in many major European countries. For that potential to be realised, the market must remain open, competitive, and thriving. UMG already holds excessive power, and further consolidation would only entrench that. It’s crucial that this is addressed and stopped to ensure a healthy and diverse music ecosystem across Europe.
Dario Draštata, Chair of IMPALA, President of regional association RUNDA Adria and Executive Director of Dallas Records

An op-ed published last week by Ruth Barlow, Chair of AIM, outlined our concerns about the increased global market dominance of UMG and the power this has already given them to dictate terms and control access to the market with consequences for the entire music ecosystem. ‘This isn’t just a challenge for independent labels; it’s an existential threat to artistic diversity, fair competition, and the music landscape itself.’ The news about the case going back to national competition authorities is also an opportunity for the UK to step in to keep the market open and ensure continued consumer and artist choice. We call on the UK regulators to follow this lead, given the importance of the diverse music sector to the UK economy and society. The global music market should remain innovative and accessible to all.
Gee Davy, CEO of the UK’s Association of Independent Music