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The European Commission is expected to investigate the planned acquisition of $ 775 million by Universal Music Group of the independent music service company Downtown Music, in the midst of the affirmations, the agreement will give too much power to the greatest player in the industry.
On Friday, Brussels will announce the probe on the agreement, said officials informed of the preparations for the Financial Times.
Representatives of independent music companies urged the competition authorities to examine and block the agreement, which was announced in December 2024, arguing that this would make it universal even more dominant in the ecosystem of the music industry.
Downtown Music provides a range of services in the music industry, such as copyright management, fees, marketing, promotion and distribution to streaming platforms.
The Commission, which oversees the EU antitrust laws, will act on a reference by the Dutch authority for consumers and the markets, officials said. The headquarters of Universal is located in the Netherlands and the company is listed on the Dutch Stock Exchange.
Brussels has sweeping powers to impose fines or block the mergers according to which he decides to have violated the competition rules of the EU.
Universal music is by far the largest music company in the world. The group based in Los Angeles, which houses artists such as Taylor Swift and Kendrick Lamar, controlled 37% of the American market in the first quarter of 2025, according to Display panelThe Entertainment Magazine.
However, in recent years, the big record companies – Universal Music, Sony Music and Warner Music – have been reduced to listening to Spotify. In 2024, songs from the three main labels and Merlin, a group representing large Indies, represented around 71% of total listening to the Spotify streaming service, compared to 87% in 2017.
The acquisition by Universal de Downtown is the latest example of the majors swallowing the small independent smaller labels. Sony Music in 2021 acquired the Awal Label Services Group, while Warner Music in 2021 bought 300 Entertainment, the label behind rapper Megan Thee Stallion, and in 2023 took a majority stake in Elliott Grainge 10K projects.
The European Association of Independent Trade Impala has expressed its concerns concerning the property by downtown Downtown Music of independent distributors Fuga and CD Baby.
He arguments This alleged Juggernaut strategy of universal music of acquisitions in access to the Gorges market and exercises power on digital services, as well as to control a whole series of essential services on the music market “threatens independent artists and labels.
Universal Music Group said that the company had “impatient to continue to cooperate with the Commission … We are convinced that we will close this acquisition in the second half, on its initial calendar”.
The committee did not immediately respond to a request for comments.
