EU Merger Watchdog Restarts Probe of Universal Music Group's Downtown Deal
By Edith Hancock
The European Commission has restarted its investigation of Universal Music Group's $775 million plan to buy Downtown Music after pausing it in September.
The commission has set a new Feb. 6 2026 deadline to decide whether it can approve the merger, according to an update on the regulator's case page. The competition watchdog originally planned to wrap up its in-depth probe by the end of November, but paused its scrutiny while officials waited for more information from the companies.
A spokesperson for the commission said that the clock restarted on the probe on Oct. 20.
Universal Music needs a green light from the commission to close the deal after authorities in the Netherlands and Austria flagged it to European Union-level officials for investigation.
"We look forward to continuing to work constructively with the Commission to convey the benefits this transaction will bring to the independent music community in Europe," a spokesperson for UMG said, saying it is confident the watchdog will clear it.
Downtown did not immediately reply to a request for comment.
Universal-owned Virgin Music announced its plan to buy Downtown in December last year to take advantage of the New York-based label's music publishing, distribution and royalties services. The companies flagged their deal to the EU's competition regulator in June, triggering the watchdog's merger screening process.
Some independent labels have openly criticized and lobbied against the planned acquisition, saying it could make it even harder for them to compete with Universal. The commission said it would open an in-depth investigation into the deal in July.
Companies' transactions can be delayed if antitrust investigations take longer than originally planned.
They can also offer concessions--such as divesting business units or making certain investment commitments--to ease the regulators' concerns that their plans could distort competition.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
October 28, 2025 08:42 ET (12:42 GMT)
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