EU Launches Probe Into Universal Music's Downtown Buyout as IMPALA Calls for Complete Block
The European Commission has launched an investigation into Universal Music Group's proposed $775 million acquisition of Downtown Music Holdings, following referrals from competition watchdogs in the Netherlands and Austria.
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The Commission believes the acquisition "threatens to significantly affect competition" in various music markets across multiple EU Member States. Of particular concern are markets where both companies maintain active operations, especially in Austria and the Netherlands.
The EC has requested UMG to formally notify the transaction and prohibited its implementation until receiving regulatory clearance. Despite this development, Universal Music remains confident the deal will complete in the second half of the year as originally planned.
IMPALA, representing the independent music sector, strongly opposes the acquisition. Its executive chair Helen Smith has called for the deal to be "blocked entirely," stating that UMG has already exceeded reasonable market size even before the Downtown addition.
The UK music industry is also pushing for similar scrutiny, with AIM CEO Gee Davy calling for British regulators to investigate given the music market's significance to the UK economy.
Future updates regarding the investigation will be available through the Commission's register under case number M.11956.
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