By Laurenz Van de Sande | Europe | November 24, 2025| 17:47 CET

The European Commission has formally objected to Universal Music Group’s proposed $775 million acquisition of music services company Downtown, warning that the deal could undermine fair competition in the recorded music distribution market.

In a Statement of Objections issued on Monday, the EU’s executive arm outlined its preliminary view that the transaction may restrict competition in the wholesale distribution of recorded music. The Commission launched an in-depth investigation into the takeover in July, citing concerns that the merger could consolidate too much market power in the hands of UMG, the world’s largest music company.

Central to the Commission’s concerns is Downtown’s Curve platform, which stores and processes commercially sensitive data for music labels and artists. Regulators fear that UMG, if granted control over Downtown, could gain privileged access to this sensitive information, giving it an unfair advantage over rival record labels. This, the Commission warned, could weaken competitors’ ability and incentive to compete effectively in the market.

“The acquisition may provide UMG with both the ability and incentive to exploit sensitive data to reinforce its dominant position,” the Commission stated, adding that such an information advantage could distort competition across the European music industry.

UMG now has the opportunity to respond to the objections and can request an oral hearing as part of the ongoing regulatory process. The Commission will make a final decision following its assessment of the company’s response and any proposed remedies.

The case underscores the EU’s increasingly strict approach to large mergers, particularly in industries where data control and market concentration pose risks to competition and innovation. If the objections are upheld, UMG could be required to modify the deal or abandon the acquisition altogether.

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