Universal Music Poised for EU Approval of Downtown Acquisition
EU Antitrust Approval Process
By Foo Yun Chee
Details of the Acquisition
BRUSSELS, Jan 20 (Reuters) - Universal Music Group is set to secure EU antitrust approval for its $775 million bid for Downtown Music after regulators signalled acceptance of its offer to sell the latter's royalty services platform, people with direct knowledge of the matter said.
Regulatory Concerns Addressed
Universal last month offered to divest Downtown's royalty services platform Curve to address the European Commission's competition concerns.
Impact on Independent Labels
The EU antitrust watchdog has not demanded further concessions, the people said.
The Commission, which is scheduled to decide on the deal by February 27, and Universal declined to comment.
The acquisition, via Universal unit Virgin Music Group and announced in December 2024, has drawn criticism and pushback from a wide swathe of independent labels, worried about the boost to Universal's market power and want the deal to be blocked.
Downtown owns a major music publisher and a number of other businesses that help musicians collect royalties.
The Commission last year warned that Universal may have the ability and incentive to gain access to commercially sensitive data that is stored and processed by Downtown following the acquisition.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan and Louise Heavens)
