Acquisition by Universal Music Group Under Review by EU Competition Authorities (Report)

Investigation Into Universal Music Group Proposal

European regulators are gearing up to investigate the proposed acquisition of Universal Music Group for 775 million US dollars in the city center.

This is according to Financial Times, which reports that the European Commission plans to initiate an investigation into the acquisition, “amid concerns that the transaction will concentrate too much power in the hands of the largest player in the industry.”

The proposed deal has faced criticism from independent label representatives, who are urging regulators to scrutinize the acquisition.

Sources familiar with the preparations indicate that Feet will announce the investigation reports on Friday (April 25).

Details of the Proposed Acquisition

An FT report suggests that the EU probe will be conducted in response to a request from the Dutch competition regulator, the Netherlands Authority for Consumers and Markets. UMG is publicly traded on Euronext in Amsterdam.

The European Commission has the authority to block mergers and acquisitions if it assesses that they would significantly hinder competition within the European Union.

Virgin Music Group UMG disclosed in December that it agreed to acquire Downtown Music Holdings LLC for 775 million dollars.

The acquisition, pending regulatory approval, is expected to be finalized in the second half of 2025.

“We are confident that we will complete this acquisition in the second half of the year, as originally planned.”

Universal Music Group

UMG stated to Feet that it is “looking forward to continuing to cooperate with the commission” and is “confident that we will complete this acquisition in the original timeframe.”

The City Center’s Background

The city center, founded by Justin Kalifovitz, began as a music publishing entity in 2007 but has since evolved into a comprehensive services company involved in recorded music, publishing, and various other sectors.

It previously had a copyright portfolio sale coordinated for about 400 million dollars three and a half years ago.

Today, the organization collaborates with approximately 5000 business clients and over 4 million creators across 145 countries for diverse ventures.

The city center has more than 20 offices on six continents, with a portfolio that includes Fuga, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing, and Songtrust.