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Commission sends Statement of Objections over proposed acquisition of Downtown by UMG

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The European Commission has informed Universal Music Group (‘UMG') of its preliminary view that its proposed acquisition of Downtown may restrict competition in the market for the wholesale distribution of recorded music.

On 22 July 2025, the Commission opened an in-depth investigation to assess if the transaction may allow UMG to reduce competition in the market for (i) the wholesale distribution of recorded music in the European Economic Area (‘EEA') by acquiring commercially sensitive data of its rival record labels; and (ii) the supply of artist and label (‘A&L') services in the EEA by removing an important competitive force. A&L services consist mainly of distribution services to third-party labels and artists, including monetisation, marketing and promotion as well as data analytics and management.

The Commission conducted a wide-ranging investigation to understand the affected markets and the potential impact of the transaction. As a result of this in-depth investigation, the Commission is concerned that UMG may have the ability and incentive to gain access to commercially sensitive data that is stored and processed by Downtown's Curve and that such information advantage for UMG would hamper rival labels' ability and incentive to compete with UMG.

The sending of a Statement of Objections does not prejudge the outcome of the investigation. UMG now has the opportunity to reply to the Commission's Statement of Objections, to consult the Commission's case file and to request an oral hearing.

A press release is available online.

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