Following EU decision on UMG/Downtown, WIN calls on all governments worldwide to guarantee competition on fair and equal terms

The European Commission has published its decision to approve the acquisition of Downtown by Universal Music Group (UMG), on the condition that UMG divests royalty services business Curve. This decision comes after detailed investigation by national and European regulators since the start of 2025 to examine the negative consequences of this deal on the music ecosystem.

IMPALA has released a statement with the key conclusions to draw (read here).

Throughout the process, independent music businesses and other stakeholders have raised concerns that this deal would give UMG more control over the market and an unfair advantage on its competitors. WIN, IMPALA, and other international trade bodies have supported their members in their opposition of the deal, including the unprecedented ‘100 Voices’ campaign.

The outcome is an achievement for the independent sector. Only 1% of all merger cases notified to the EU last year got to “phase II” investigation, and of the two decisions concluded in 2025 neither imposed any divestment or other remedies. This shows that the concerns raised were taken seriously at the highest levels. It also signals that future acquisitions will be subject to scrutiny.  

“The independent community can be proud of what has been achieved since this acquisition was announced 14 months ago. We commend the European Commission for its decision to investigate it, and we expect that competition authorities will remain vigilant and any new acquisitions by major labels will be subject to thorough scrutiny, not only in Europe but in other jurisdictions as well.”
Noemí Planas, WIN CEO

In the face of increasing market consolidation, regulatory action is more important than ever. This is not just a European issue, and it is not just about recorded music. Global major players are expanding their control and power by acquiring key independent companies and essential services around the world (including publishing and live music), further strengthening their leverage, especially in negotiations with digital platforms. The issues highlighted in this case have been articulated in many jurisdictions, and any future transactions should be evaluated by national competition authorities with these risks in mind.

“The risks of over-consolidation in the music market are evident, and our community will continue to advocate for a level playing field for independent music businesses and to oppose consolidation when it reduces market access, cultural diversity, and consumer choice, in line with WIN’s Global Independent Values. We are proud of our members, independent music trade associations from around the world who demonstrated the power of collaboration. One thing is clear: the effects of consolidation are global and far-reaching, regardless of where the deal is made. That is why we call on governments worldwide to reflect on their local music markets and how their infrastructure is controlled, and to ensure regulatory frameworks that allow independent music companies to compete on fair and equal terms.”
Noemí Planas, WIN CEO

“The debate and the campaign around this acquisition have provoked heightened consciousness of concentration and the challenges and pitfalls it presents, among independent artists and producers around the world. WIN has welcomed new members during the period. They will be well prepared to scrutinise, and offer alternatives to, any further moves to restrict the market and the opportunities it provides.”
Mark Kitcatt, WIN Chair

IMPALA has flagged there are shortcomings with the outcome in Europe and will analyze the EC’s decision once it is made public to consider whether an appeal or other action is required. Real choice and fair access to the routes to market and the supply chain must be protected in practice. Thousands of independent labels and artists worldwide rely on FUGA and other Downtown services, and WIN expects companies that want to have independent distribution to be able to transition smoothly and without penalties to an alternative provider. The sector has long championed good practices in this respect, including the Digital Distribution Switch Code developed by AIM, which should serve as a model.

“I am so encouraged by how effective IMPALA and the broader independent community was in this fight against further market concentration, forcing a serious review by the European Commission and extracting a meaningful remedy. More importantly, IMPALA’s work here makes market-bending acquisitions like this one harder to pull off in the future.”
Darius Van Arman, Secretly Group Co-CEO

“We expect regulators to be on the look out for any abuse or dysfunction in terms of streaming revenue, cultural diversity, and the freedom of labels to move if they wish to retain independent distribution. This is also an opportunity for the sector to work together on an “optimal ecosystem” as Dan Fowler’s report highlighted last week.”
Helen Smith, Executive Chair of IMPALA

The decision on UMG/Downtown should open the door to more opportunities for independent expansion. In addition, as recommended in IMPALA’s report on the importance of independence and cultural diversity in the music ecosystem, more investment is also essential, as well as ambitious collaboration across the whole industry to promote diversity, which is in the interests of all music companies, big and small.