By Foo Yun Chee BRUSSELS (Reuters) -EU antitrust regulators will decide by July 22 whether to clear Universal Music Group's $775 million acquisition of Downtown Music, according to a European
EU Regulators Set Deadline for Universal Music's Downtown Acquisition Decision
By Foo Yun Chee
BRUSSELS (Reuters) -EU antitrust regulators will decide by July 22 whether to clear Universal Music Group's $775 million acquisition of Downtown Music, according to a European Commission filing on Tuesday.
Virgin Music Group, the global independent music unit of Universal, announced the deal in December last year. World number one music label UMG represents global stars such as Taylor Swift and Billie Eilish.
Downtown Music collectively serves over 5,000 business clients and more than four million creators across 145 countries. Its music publishing unit counts John Lennon & Yoko Ono, George Gershwin, Miles Davis, Wu-Tang Clan and John Prine among its clients.
The EU executive, which acts as the competition enforcer in the 27-country bloc, can clear the deal with or without remedies in its preliminary review or it can open a four-month long investigation if it has serious concerns.
Analysts said a full-scale investigation seems the likeliest option in view of the market power of big music labels.
The deal has triggered criticism from European independent music labels group Impala which said the acquisition would further entrench Universal's position across European music markets and give it more control over streaming services.
Impala, which wants the deal to be blocked, said the acquisition would also reduce opportunities for independent labels.
Universal said it look forward to continuing to co-operate with the European Commission in the weeks ahead.
"We are confident that we will close this acquisition in the second half of the year, on its original timeline," the company said in an email.
A former chief economist at the UK's competition authority in a June 12 letter to EU antitrust chief Teresa Ribera voiced worries about the deal.
The acquisition "represents another step in UMG's broader strategy of undermining the vitality and viability of the independent music sector – both in the EU and globally – with a view to strengthening its own position, and potentially also that of the other two majors (Warners and Sony)", Amelia Fletcher said in her letter seen by Reuters.
Fletcher co-founded a small independent label and publisher which uses Downtown's services.
(Reporting by Foo Yun Chee; editing by David Evans)
