EU Scrutinizes Virgin Music's Acquisition of Downtown Music Amid Antitrust Concerns
Virgin Music Group's $775 million acquisition of Downtown Music is under EU antitrust investigation due to competition concerns. Despite a chance to offer remedies, Virgin Music did not address the regulatory issues, prompting a full-scale four-month investigation by the EU Commission.
The anticipated $775 million acquisition of Downtown Music by Virgin Music Group, a unit of Universal Music Group, is now facing a comprehensive antitrust investigation by the EU. Competition concerns have been raised by several European independent labels, suggesting the acquisition could further consolidate Universal's market position.
According to sources familiar with the situation, Virgin Music had a deadline to propose regulatory remedies but failed to do so, leading to this intensified scrutiny. The European Commission, serving as the EU's competition regulator, declined to comment on the matter but noted that a preliminary review is due to conclude shortly, with a detailed probe to follow.
Despite the emerging concerns, a Virgin Music spokesperson stated that the company will continue to cooperate with the Commission. They emphasized that the projected closing timeframe for the acquisition remains the latter half of 2025, dismissing opposition claims as misrepresentations by a minority of independent labels.
(With inputs from agencies.)
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