EU clears Universal Music purchase of Downtown with conditions

Friday 13 February 2026 - 13:50

By: Dakir Madiha

EU clears Universal Music purchase of Downtown with conditions

The European Commission on Friday approved Universal Music Group’s 775 million dollar acquisition of Downtown Music Holdings, subject to conditions requiring the sale of Downtown’s royalty accounting platform Curve to address competition concerns.

The conditional clearance concludes a months long regulatory review that examined whether the world’s largest record company could gain unfair access to commercially sensitive data belonging to rival labels. Virgin Music Group, Universal’s independent music division leading the transaction, and Downtown both welcomed the decision, describing it as the final regulatory hurdle before completion.

The Commission opened an in depth Phase II investigation in July 2025 amid concerns that Universal could use data stored on Curve’s platform to secure a competitive advantage. In November, regulators issued a formal statement of objections warning that Universal might have both the ability and incentive to access sensitive commercial information that could undermine competitors.

To resolve those concerns, Universal proposed in December to divest the entire Curve business, including its staff, client contracts and software platform, to an independent buyer approved by the Commission. Reuters reported that the Commission accepted the remedy without requiring additional concessions.

Under the agreement, Universal will acquire Downtown subsidiaries including music distributor FUGA, CD Baby and publishing administration service Songtrust. Curve will operate as a separate entity until its eventual sale is completed.

Nat Pastor and JT Myers, co chief executives of Virgin Music Group, said integrating Downtown’s team and capabilities would offer greater flexibility and more targeted services to independent entrepreneurs, artists and labels.

Downtown Chief Executive Pieter van Rijn said the partnership would strengthen independence and expand the cultural reach of the global independent music community.

The transaction is expected to close in the coming weeks. Independent label associations had strongly opposed the deal, with IMPALA urging regulators to block it outright.