Independent Music Companies Call For European Commission to Block UMG’s Acquisition of Downtown

The independent music community is calling on regulators to block Universal Music Group’s proposed US$775 million acquisition of Downtown, as a month-long formal investigation gets underway.

This European Commission this week started its probe into UMG’s purchase, after authorities in the Netherlands and Austria referred the case.

Investigators have set a provisional deadline of 22nd July to reach an initial conclusion.

European independent music companies lobby body IMPALA is urging the EC to trigger an in-depth phase two investigation, and for the transaction to be blocked outright.

IMPALA has criticised the proposed arrangement, arguing an enlarged UMG, already the world’s biggest music company, is bad for business, terrible for market competition.

“We welcomed the news last month that the EC had decided to investigate and we have been keen to see the assessment get started, so this is great news,” remarks Helen Smith, IMPALA executive chair, in a statement.

“There is only one outcome to prevent harm and that is for the EC to block this outright, to secure balance, harmony and diversity in the ecosystem.”

Should the deal go down, UMG will absorb Downtown Music Holdings and its critical pieces of independent music infrastructure, including CD Baby (direct-to-creator distributor), FUGA (B2B distribution), Songtrust (publishing admin) and Curve (royalty/financial services).

In the indies’ corner is the chair of the European Parliament’s most influential committees, French economist and parliamentarian Aurore Lalucq, who has penned a formal written question to Teresa Ribera, the European Commission’s executive vice president in charge of competition matters. 

Also, professor Amelia Fletcher the former chief economist of the UK competition authority, artist and independent music label co-founder, issued an open letter urging the European regulators taken the in-depth route, arguing that the acquisition represents “another step in UMG’s broader strategy of undermining the vitality and viability of the independent music sector” and that it is “vital that this anti-competitive process is stopped”.

UMG’s indies arm Virgin Music Group announced last December a move to acquire Downtown, one of the independent sector’s leading players. Subject to regulatory approvals, that deal “is expected to close in the second half of 2025,” reads a statement shared at the time.

Established as a music publishing company in 2007, Downtown now boasts 20 offices across six continents, and is active across artist & label services, distribution, royalties & financial services, and music publishing.

Collectively, the business serves over 5,000 business clients and more than four million creators.

IMPALA was established in 2000 and now represents over 6,000 independent music companies in Europe, including key indies and national peak bodies.