The European Commission has launched its formal review of Universal Music Group’s intended acquisition of Downtown, after UMG officially notified the EC of the proposed $775m deal. The EC has set a provisional deadline of 22nd July for an initial decision. Thus the Commission’s official assessment has begun after previously announcing that the deal would be examined over concerns it could “significantly affect competition in certain markets of the music value chain” across multiple EU markets.
The move follows some senior voices raising concern over the mooted deal, including economist Aurore Lalucq issuing a formal written question to Teresa Ribera, the Commission’s Executive Vice President responsible for competition; and an open letter sent by former Chief Economist of the UK’s competition authority Professor Amelia Fletcher.
European indie body Impala has been vocal in its criticism of the intended deal, and its executive chair Helen Smith was happy: “we have been keen to see the assessment get started, so this is great news. There is only one outcome to prevent harm and that is for the EC to block this outright, to secure balance, harmony and diversity in the ecosystem.”
