The European Commission is reportedly preparing to launch a phase-two investigation into Universal Music Group’s proposed Downtown Music acquisition. Photo Credit: Markus Winkler
The EU is reportedly set to ramp up its investigation into Universal Music Group’s proposed Downtown Music acquisition.
That’s according to multiple anonymous and ostensibly in-the-know sources cited by Reuters. As we reported earlier in July, the European Commission has until the 22nd to decide whether to green-light the $775 million purchase or dive into a more involved second investigation phase.
Meanwhile, amid substantial indie-sector opposition, evidence has long pointed to likely phase-two scrutiny. One not-so-subtle example: The Commission itself went ahead and declared that the transaction “threatens to significantly affect competition,” we previously noted.
Of course, the remark (plus similar statements) hardly suggests that a rubber stamp is in the cards. Additionally, if prior EU regulatory episodes are any indication, well-placed Commission sources aren’t in the habit of making unfounded claims (or at least unfounded claims that aren’t carefully calculated) to the media ahead of quick-approaching deadlines.
Putting all that information on the backburner and returning to the Reuters piece, the Commission reportedly intends to kick off a “full-scale, four-month investigation” after the aforementioned July 22nd deadline.
A Universal/Virgin rep pushed back, emphasizing the current lack of a formal Commission decision. The same individual doubled down on the expectation that the deal will wrap sometime during the remainder of 2025; technically, execs had originally anticipated a mid-2025 closure.
Needless to say, it’ll be worth closely monitoring the reportedly forthcoming investigation – and seeing whether the Commission opts to pull the plug on the deal.
Though the indie space’s recent focus has been on escalating the probe into its second phase, IMPALA and others have also called for the transaction to be blocked outright. If the Commission ultimately does so, the move would for obvious reasons drive expansion-strategy pivots in Europe.
A related point: The U.K.’s Competition and Markets Authority (CMA) in 2022 signed off on Sony Music’s AWAL buyout despite considerable indie criticism and a comprehensive investigation. This time around, however, the UMG-Downtown qualms appear comparatively unified and vocal.
Closing on an adjacent note, the Universal-Downtown play has been the subject of scrutiny (but not a full-scale watchdog investigation) specifically in the U.K. music market as well.
“The news about the EU shows the way for other jurisdictions to intervene,” Gee Davy, CEO of London-based AIM, said earlier in 2025. “We call on the UK to follow, given the importance of the music market to the UK economy. The music sector deserves to remain innovative and accessible to all.”
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