After a seven-week suspension, the European Commission has resumed its investigation into Universal Music Group‘s $775 million acquisition of Downtown Music, setting a new deadline of February 6, 2026, for its final decision. The probe, initially halted on September 2, 2025, was restarted on October 20 after both companies provided additional requested information necessary for the regulatory review.
The Commission’s investigation focuses on whether the acquisition would reduce competition by eliminating Downtown as an independent player in the music industry ecosystem. Originally scheduled to conclude in November 2025, the timeline shifted when regulators determined the submitted materials were insufficient for an extensive assessment of the deal’s potential market impact.
The scrutiny began when Dutch officials, later joined by Austria, triggered an EU competition law referral mechanism, expressing concerns about the merger’s effects on European music markets. Independent music organizations have been particularly vocal about the acquisition, which was first announced in December 2024 through UMG’s Virgin Music Group subsidiary.
Critics from the Independent Music Companies Association (IMPALA) have characterized the deal as a “land grab” that could greatly diminish alternative routes to market for smaller labels and artists. They argue the merger would further concentrate power within an already consolidated industry, potentially harming diversity and innovation across publishing, distribution, and royalty services sectors. The acquisition could threaten independent musicians’ ability to develop diverse income streams that are increasingly vital in today’s evolving music marketplace.
UMG representatives have pushed back against these concerns, calling such claims “fearmongering” and maintaining that the acquisition would ultimately benefit the independent music community. Companies undergoing antitrust scrutiny often propose divestiture commitments to address competitive concerns. The company contends that integrating Downtown’s capabilities would strengthen services available to European artists and labels.
The Commission’s detailed Phase II investigation represents standard procedure for complex mergers with potential competitive implications. Independent artists are particularly concerned about how consolidation might affect their ability to access platform-specific features for music distribution and fan engagement. Regulatory suspensions like this one are typical when additional information is required, allowing authorities sufficient time to evaluate whether the transaction complies with EU competition laws or requires conditions before approval can be granted. Over 200 industry representatives have signed a letter as part of the “100 Voices” campaign opposing UMG’s acquisition.
