Brussels, 28th February 2025

IMPALA, the voice of Europe’s independent records labels, is warning that music industry giant Universal Music Group (UMG) could increase its stranglehold over the music market if it is allowed to buy up key distribution companies and other services labels and artists need to reach fans.

UMG is the largest music company in the world, in an already very concentrated market. Its planned acquisition of Downtown, which owns FUGA, a full service B2B music distributor, and CD Baby, the one-stop digital distribution service much loved by new and independent artists, as well as other strategic services, is designed to expand UMG’s market power even further. This follows UMG buying European indie champion PIAS at the end of last year.

With the Brit Awards taking place this weekend in London, following the Grammies in Los Angeles earlier this month, and other music-award ceremonies taking place, IMPALA says: “We need to press the pause button.”

“We are right in the middle of the industry’s award show season. It’s the perfect moment to celebrate diversity, to remember what independent really means and think of all the labels and artists that could struggle to reach the public in the future”, says Helen Smith, IMPALA’s Executive Chair.

“A thriving music market needs effective competition and plenty of routes to market for labels and artists. UMG is planning the exact opposite because they want to control access to the market. The two other music majors, Sony and Warner, are also buying up music businesses in key markets. With far fewer options, many labels and artists are going to be shut out”, Smith adds.

European independent labels are calling on competition authorities in all key jurisdictions to put an end to UMG’s “juggernaut” strategy of rapid acquisitions around the world, crushing everything in its path.

Dario Draštata, Chair of IMPALA, President of regional association RUNDA Adria and Executive Director of Dallas Records adds: “All markets need big companies, but the music market is experiencing a level of concentration that would not be tolerated in any other market. Independent labels and artists should not depend on their competitors for access. We also look to regulators to see through the ‘indie washing’ and take action.”

IMPALA, which has over 6,000 members in 33 territories across Europe and the UK, including prominent independent labels in all key countries, is calling on competition authorities to block these planned acquisitions.

The association points out that the EU has already acted to limit UMG’s market power, saying that Universal’s grip on the music market curbs growth and competitiveness which are key priorities for the EU and national governments.

The association has sent regulators in key jurisdictions detailed analyses of the damage these acquisitions would wreak on the music market if they go ahead. This includes almost total control of access routes to the market and far fewer options for labels and artists to distribute their music and access other essential services. Higher prices and greater control over the deal structures of digital services is inevitable and UMG would have unparalleled access to its competitors’ data.

In its outreach to regulators, IMPALA asks them to carry out detailed investigations into the potential harm to competition from serial acquisitions like these. Francesca Trainini, IMPALA President and Vice President of Italian association PMI comments: “We are explaining the role of independents and their artists and why access-to-market routes must not be owned by their biggest competitors. Regulators need to look at relevant market share and control share data in all affected areas of the business, including distribution, publishing, royalty accounting and digital services.”

IMPALA’s Helen Smith says: “This is like shining a light in the basement of a four-storey building to discover that the owner of the first and second floor owns the pipes and wiring and the lifts. They control the whole structure. You need to switch on all the lights to understand how the sector works and the effect of these current acquisitions in the context of a market leader, UMG, with interests at all levels of the music ecosystem.”

IMPALA is also ringing the alarm about UMG’s claims that the businesses it is buying are still independent. “This is misleading and unfair competition, and amounts to ‘passing off’, Smith says, referring to the practice of making misleading claims to customers, which is against basic competition principles in most parts of the world.”

About IMPALA

IMPALA was established in 2000 and now represents over 6000 independent music companies in Europe. 99% of Europe’s music companies are small, micro and medium businesses and self-releasing artists. Known as the independents, they are world leaders in terms of innovation and discovering new music and artists – they produce more than 80% of all new releases and account for 80% of the sector’s jobs. IMPALA’s mission is to grow the independent music sector sustainably, return more value to artists, promote diversity and entrepreneurship, improve political access, inspire change, and increase access to finance. IMPALA works on a range of key issues for its members and started a new co-funded work programme as an EU cultural network in 2025. IMPALA runs various award schemes and has a programme aimed at businesses who want to develop a strategic relationship with the European independent sector – Friends of IMPALA