BRUSSELS (Reuters) -The European Commission on Monday said it objected Universal Music Group's $775-million takeover of Downtown Music, out of competition concerns. "The Commission is concerned that
EU Commission Challenges Universal Music's Downtown Deal
BRUSSELS (Reuters) -The European Commission on Monday said it objected Universal Music Group's $775-million takeover of Downtown Music, out of competition concerns.
"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," it said in a statement.
"Such information advantage for UMG would hamper rival labels' ability and incentive to compete with UMG."
The EU competition enforcer had been investigating the deal on concerns that it may hamper competition and remove an important competitor, but temporarily halted the investigation in September awaiting further information.
Independent labels have criticised the acquisition and even called for it to be blocked.
Universal Music has the opportunity to reply to the Commission's objections and request a hearing with the enforcer, the Commission said.
(Reporting by Alessandro Parodi, editing by Bart Meijer)
