Universal Hit With EU Objections Over $775M Downtown Acquisition

The European Commission has formally issued a statement of objections in its ongoing investigation into Universal Music Group’s proposed $775 million acquisition of Downtown Music Holdings. This move, announced late Sunday, signals serious preliminary concerns from the EC, requiring UMG to respond.

The European Commission’s probe, officially launched in July, centers on whether UMG’s acquisition would grant it access to “commercially sensitive data” from rival labels through Downtown’s artist and label (A&L) services, which manage distribution, royalty accounting, and rights management.

As the Commission explained in its new announcement, it is concerned that UMG “may have the ability and incentive to gain access to commercially sensitive data that is stored and processed by Downtown’s Curve, and that such an information advantage would hamper rival labels’ ability and incentive to compete with UMG.”

A statement of objections is a formal notice from the European Commission outlining its concerns in an investigation, giving the company a chance to respond, review the case file, and request an oral hearing, without determining the final outcome.

Downtown operates several platforms widely used by independent labels and artists, including the distribution services FUGA and CD Baby, the royalty accounting platform Curve, and the publishing administration provider Songtrust.

The investigation faced delays in September when the EC paused proceedings after UMG and Virgin failed to provide requested information on time. It resumed on Oct. 17, with a provisional deadline for a final decision set for Feb. 6, 2026.

UMG has maintained that the transaction will benefit artists, labels and the independent music sector in Europe. A company spokesperson told Bloomberg on Monday that UMG is cooperating constructively with regulators and remains confident the deal will go through. The company did not immediately respond to Billboard’s request for comment.

Music groups, including the European independent labels trade body IMPALA, have strongly supported the European Commission’s investigation, warning that UMG’s proposed acquisition could undermine market diversity and fair competition. They argue the deal should be blocked to safeguard smaller labels and indie artists.

In October, industry leaders from Beggars Group, WIM, AIM, Exceleration, Cooking Vinyl and dozens of other labels and organizations launched a campaign called “100 Voices”, emphasizing that the merger “poses a serious threat to competition, diversity, and fair access across the music industry.”

Last week, responding to reports of the Commission’s forthcoming objections, IMPALA issued a statement stressing the global significance of the case: “Competition and diversity in the music market in Europe, and worldwide, depend on the outcome of this decision.”

The EC’s concerns underscore wider questions about data access and growing market concentration in the music sector, positioning this review as a key test of competition policy in an increasingly data-driven music economy.