European independent labels trade body IMPALA has reiterated its call for the European Union to block UMG’s proposed acquisition of Downtown.
It follows the latest developments in the competition investigation by the European Commission. The regulator has now extended the deadline to February 27 after UMG proposed remedies to the $775 million deal.
The European regulator can accept remedies that “eliminate the competition concerns entirely, be comprehensive and effective from all points of view”.
The European Commission recently issued a statement of objections following its investigation into the market impact of the deal. The Commission said it is concerned that UMG may have the ability and incentive to gain access to commercially sensitive data that is stored and processed by Downtown’s Curve, and that such an information advantage for UMG would hamper rival labels’ ability and incentive to compete with UMG.
UMG has now submitted a remedy to the Commission.
“We can confirm that the parties have submitted commitments and that the provisional deadline for the Commission to take a decision in this case is now 27 February 2026,” said a Europan Commission spokesperson.
“Following constructive conversations with the European Commission, we have submitted a robust remedy that comprehensively addresses the Commission’s only remaining concern,” said a UMG spokesperson. “This deal is about offering independent music entrepreneurs access to world-class tools and support to help them succeed. We are confident that the Commission will recognise the benefits of the transaction for artists, labels, independent music, and fans in Europe, and clear the transaction swiftly.”
However, IMPALA has today responded to the UMG remedy in relation to Downtown’s Curve Royalties by calling on the EC to block the deal outright, or to require “divestments of all the businesses whose acquisition would cause concerns (anything less like behavioural remedies or partial divestments, would not eliminate the concerns)”.
Helen Smith, IMPALA’s executive chair, said: “We look to the Commission to apply logic in its assessment of both its findings and any proposed remedies and extend where required. There is no presumption in favour of the merging parties and there is time to assess these issues properly. We are continuing our discussions with the European Commission as an interested third party to ensure that we reach a sound conclusion in the interests of the whole market and which stands up to scrutiny.”
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‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.musicweek.com ’
