Wednesday 2 April – EMMA has encouraged the European Commission to support the proposed review of Universal Music Group’s acquisition of Downtown Music, an independent music services company. We believe this deal poses a direct threat to market competition and the sustainability of independent artists and music businesses.
As the European organisation advocating for music managers and their artists, we believe this acquisition would severely undermine competition by consolidating Universal’s control over key market access points. It would drastically reduce opportunities for independent labels and artists to distribute their music, access essential services, and negotiate fair terms – ultimately stifling innovation and diversity in the industry. Such unchecked consolidation and control runs counter to the EU’s core priorities of fostering growth, competition, and fair market conditions. We stand firmly with IMPALA in their efforts to challenge these anti-competitive practices.
Under Article 22 of EU merger rules, member states can request a Commission investigation into transactions that, while not meeting standard review thresholds, threaten competition and trade within national markets. Universal’s independent division, Virgin Music Group, announced in December its intent to acquire Downtown for $775 million. Given Downtown’s critical role in providing publishing, distribution, and artist services to over 4 million creators in 145 countries, this acquisition would further entrench Universal’s control, deepening market disparities and sidelining independent voices.