Universal's $775M Acquisition Faces European Scrutiny

EU antitrust regulators are set to decide by July 22 on the fate of Universal Music Group's $775 million acquisition of Downtown Music. The deal, announced in December, could face a full-scale investigation due to concerns over market dominance by major music labels.

Virgin Music Group, part of Universal, initiated the acquisition, which covers Downtown's extensive client base and catalog, including iconic artists like John Lennon and Yoko Ono. However, groups like Impala argue the move will entrench Universal's power in Europe's music markets.

Amelia Fletcher, a former UK competition authority economist, criticized the acquisition for potentially undermining the independent music sector. Universal remains confident of finalizing the deal within the year but acknowledges the need for cooperation with EU regulators.

(With inputs from agencies.)