Universal Music’s $775 Million Acquisition of Downtown Likely to Be Approved by European Commission, Sources Say

According to a Reuters report, the European Commission is expected to formally approve Universal Music Group's $775 million purchase of Downtown Music Holdings within the next few weeks. This follows an extensive antitrust investigation launched by the EU's executive body last summer, which escalated in November when specific competition concerns were officially detailed.

The regulatory breakthrough came after Universal offered a significant concession in December, agreeing to sell off Downtown's royalty and rights-management service, Curve. The Commission's core objection focused on the risk of Universal accessing Curve's commercially sensitive client data, potentially disadvantaging rival labels. Curve provides critical financial management services to over 500 labels and rights holders worldwide. As noted by industry analyst Clara Vance of Media Insights Group, "In today's market, the strategic leverage gained from aggregated financial data can be a greater asset than a hit song, allowing for predictive analytics that shape everything from marketing spends to artist signings." This divestment directly addresses the fear that combining such data with a major label's resources could create an unfair market advantage.

Should the acquisition be finalized, Universal plans to fold Downtown's operations into its Virgin Music Group division, which specializes in services for independent artists. This move dovetails with Downtown's own strategic evolution. The company, historically a major music publisher, sold its entire publishing catalog to Concord for $300 million in 2021 to concentrate fully on its service-based model, which includes distribution and marketing platforms.

Despite the planned sale of Curve, significant opposition remains from Europe's independent music sector. Critics argue that other key Downtown subsidiaries, such as the massive DIY distributor CD Baby and the publishing administrator Songtrust, also hold immense reservoirs of valuable market intelligence. CD Baby, founded in 1998, is a cornerstone of the independent ecosystem, having distributed over $1.5 billion to artists since its inception. Over 200 independent companies, coordinated by the trade body IMPALA, maintain that the single divestment is insufficient. They have warned the merger could limit consumer choice, stifle innovation, and weaken Europe's role as a cultural incubator.

This view is strongly advocated by influential industry voices like Martin Mills, founder of the Beggars Group. Beggars Group, an umbrella for iconic labels like 4AD and XL Recordings, has been a powerhouse of independent music for decades, launching artists such as Adele and The xx. Mills, a veteran champion of the indie sector, has publicly argued that the deal should be blocked to prevent excessive market consolidation. The European Commission is required to deliver its final decision by February 6, 2026, a ruling that will establish an important precedent for evaluating the role of data control in future media and entertainment mergers.