By Maitane Sardon
The European Union's merger watchdog said it is moving forward with its probe to Universal Music Group's $775 million plan to buy Downtown Music.
The European Commission said it has taken the next step in the investigation of the deal by informing Universal Music in writing that its proposed acquisition of the U.S. label Downtown could reduce competition in the market for the wholesale distribution of recorded music.
The commission said it is concerned that the acquisition might give Universal music access to commercially sensitive data through Downtown's platform, giving the music company an unfair advantage and making it harder for rival labels to compete.
The commission launched a formal investigation on July 22 to see if the acquisition could reduce competition in wholesale music distribution in Europe and reduce competition in artist and label services. It restarted the probe in late October after pausing the scrutiny while it waited for more information from the companies. It has set Feb. 6 as the deadline to decide whether it can approve the merger.
Universal-owned Virgin Music outlined its plan to buy Downtown for $775 million in cash in December 2024, with a view to tap into its music publishing, distribution and royalties services. In June, the companies flagged their deal to the EU's competition regulator, triggering the watchdog's merger screening process.
Universal didn't immediately reply to a request for comment.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
11-24-25 0845ET
