Brussels, 11 April 2025
Following formal requests by national competition authorities to the European regulator to open an investigation into UMG/Downtown, an influential European parliamentarian,
Aurore Lalucq (chair of the economic affairs committee) has also raised concerns in a
written question.
This is a crucial time for the European regulator as there is a tight deadline in place for the European commission to decide on opening a merger investigation into UMG/Downtown. This follows a request from the Netherlands’ competition authority (see
here) due to the effect on trade between countries. The Austrian competition authority has now joined the Dutch referral (the deal was notified in both countries).
In her question, European parliamentarian Aurore Lalucq highlights the significance of UMG’s serial acquisitions and the risks for the ecosystem if UMG/Downtown is allowed to go through. She asks the EC to:
-conduct a detailed investigation of the deal
-investigate UMG’s undue influence in the streaming market
-adopt new powers for the European Commission to call in key harmful mergers
The European commission now has six weeks to reply to this question. In the meantime, the EC will also be deciding whether to open the case and, if they do, UMG and Downtown will need to provide all the relevant data and the investigation will then start.
This parliamentarian question comes at a key moment as the commission will have to reply to it at the same time as it will be getting its investigation started.
Music is a crucial economic sector for Europe and the European parliament’s economic affairs committee looks after issues of strategic economic importance, including competition and merger policy which is implemented by the European commission on cross border cases like this one.
Concerns about market concentration moves by market leader in the music market
Question for written answer E-001387/2025
to the Commission
Rule 144
Aurore Lalucq (S&D)
The music market is a vital sector for the EU. More than 80 % of all new music is released by micro, small and medium-sized businesses who need an open and thriving market to innovate and make European artists strong and visible. This is threatened by juggernaut-style consolidation and mass demonetisation of certain music on streaming services. Universal Music Group’s acquisition of Downtown Music has been referred to the Commission by the Dutch national competition authority.
1.Does the Commission agree that there are concerns when the market leader acquires some of the world’s biggest distribution companies and other essential services through roll-up merger, giving it unprecedented control over routes to market and access to data, as well as control over how digital services pay out?
2.Does the Commission agree that this hampers the EU’s ability to grow European champions in the music sector?
3.Does the Commission agree that the following responses are urgent and essential:
– a detailed Commission investigation into this transaction;
– new Commission powers to call in key mergers that are below merger control thresholds;
– investigation of streaming reforms for undue influence by the market leader;
– assessment of whether competition rules are fit for purpose in priority ecosystems such as the cultural ecosystem?
