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EU Greenlights UMG's $775M Music Deal Post-Concessions
15 Feb
Summary
- European Union approved Universal Music Group's $775 million acquisition of Downtown Music.
- Companies offered concessions, including selling Downtown's royalty accounting platform.
- Concerns about Universal accessing rival labels' sensitive data were addressed.
The European Union has given the green light to Universal Music Group's acquisition of Downtown Music for $775 million. This decision follows a protracted investigation by the bloc's competition officials, who had raised concerns about the potential for Universal to access commercially sensitive data belonging to rival record labels.
In December, Universal Music Group offered concessions to secure the EU's approval. The most significant concession involved the divestment of Downtown's Curve royalty accounting platform. This move aimed to assure regulators that sensitive industry data would not fall under the control of a dominant competitor.
Universal Music Group, already the world's largest record company, had announced the deal in December 2024 with the goal of integrating Downtown's music publishing, distribution, and royalties services. Despite opposition from smaller labels worried about Universal's market dominance, the EU's intervention, prompted by national authorities, has now concluded.
EU economy commissioner Valdis Dombrovskis stated that the divestment of Curve was a decisive step to protect sensitive data and ensure fair competition. Universal Music Group anticipates the deal will finalize in the coming weeks, bringing together two leading music service providers to benefit the independent music community.
