Record Credit score: Trendy Music Group / Downtown Music
Cybercrime UMG’s $775 million provide for Downtown Music hits a snag as the EU investigates considerations the deal would possibly per chance perhaps per chance stifle artists signed with self reliant labels.
Trendy Music Group (UMG) has supplied $775 million to develop Downtown Music Holdings, however the deal has been effect on contend with amid a proper investigation by European Union watchdogs. The investigation comes amid considerations that the deal would possibly per chance perhaps per chance leverage advantages for UMG to conclude out smaller opponents’ uncover entry to to particular substitute companies.
“By buying Downtown, UMG would own a gigantic provider of companies for labels that compete with UMG and for artists,” said EU economy commissioner Valdis Dombrovskis. “Opening an in-depth investigation will enable us to evaluate more conscientiously whether this acquisition would dangle a foul affect on artists, labels, and indirectly, European customers.”
UMG’s projected timeline for the acquisition “remains unchanged,” however the corporate would possibly per chance perhaps per chance be forced to give concessions to assuage watchdogs with antitrust considerations. These on the complete involve promising a list of dos and invent-nots, to boot to commitments to divest overlapping businesses.
A spokesperson for Trendy urged Bloomberg that the corporate will proceed to work constructively with the rate. It goals to “contend with the willful misrepresentation of market files by self- occasions who signify a microscopic share of the hundreds of self reliant labels that stand up the self reliant neighborhood globally.”
As DMN reported final month, the EU’s investigation modified into already ongoing and modified into making ready to commence into “share two,” which led to the formal probe. The associated rate had till July 22 to resolve whether to inexperienced-light UMG’s proposed provide or delve into additional investigation. Sources indicated at the time that a more concerned probe would be the per chance scenario.
The EU’s involvement has paved the means for others within the UK tune market to chime in on the repercussions of any such important merger. “The news relating to the EU reveals the means for other jurisdictions to be conscious,” said Gee Davy, CEO of London’s AIM. “The tune sector deserves to live innovative and accessible to all.”
