Brussels, 3 April 2025

Universal Music Group’s (UMG) acquisition of Downtown Music faces EU scrutiny following a referral request from an EU member state, as first reported last week. This deal was part of a wave of acquisitions by UMG including independent labels PIAS and 8Ball Music, all announced within a few months of each other. Further strategic acquisitions are also expected.

UMG has already bought PIAS, one of the biggest independent labels and distributors. Downtown is home to two of the world’s biggest distributors FUGA and CD Baby, used by many independent labels and artists, and a host of other businesses providing key services in the music sector. 

IMPALA has consistently called on regulators to take action against UMG’s “juggernaut” strategy of serial acquisitions to gatekeep market access and exert power over digital services, as well as control a whole host of essential services across the music market, from publishing to recording, distribution and royalty accounting. This threatens music fans, as well as independent artists and labels. 

Access to data is also a huge issue and others are raising the alarm on this aspect, including UMG’s former chief privacy officer. 

In particular, IMPALA has been encouraging national competition authorities and the EU to scrutinise UMG’s acquisition of Downtown, and this latest development is a crucial step to ensure that Europe’s music market is open and competitive.  

Helen Smith, Executive Chair of IMPALA, stated: “This referral is a crucial step towards putting a stop to UMG’s juggernaut strategy. It shows two things; that regulators see the threat that this strategy poses to the market, and that the consequences go beyond national borders. It’s Europe’s competition, Europe’s diversity as a whole that is at stake. More acquisitions are expected, a good illustration of the juggernaut nature of UMG’s strategy, along with the impact of digital service changes, as we reported recently”.

Dario Draštata, Chair of IMPALA, President of regional association RUNDA Adria and Executive Director of Dallas Records added “Downtown Music is a key player. Its takeover by UMG would mean giving the world’s largest music company unprecedented control over the crucial pathways through which artists and labels reach their audiences, as well as visibility of their competitors’ data. This referral by a national competition authority is a key step towards blocking the deal”.

“We’re talking about near-total control over access and data,” continued Francesca Trainini, IMPALA President and Vice President of Italian association PMI. “When you live in a building, you need to know who controls the pipes, the wiring, the lifts. When that company is already the market leader, the consequences are clear, it’s something that would be unacceptable in any other market. The EU now has the opportunity to assess this and ensure a fair music ecosystem. We look to the EU to take the lead once again, just as it did successfully when it ruled that UMG’s acquisition of EMI would make it simply too big. We know consolidation is going to continue otherwise”. 

Gee Davy, CEO of AIM and board member of IMPALA added: “This referral to the EC is only right and to be expected, and we look to authorities in other regions that are affected by UMG’s aggressive strategy to take action. We are encouraging the CMA to inspect the impact in the UK and similarly take a tough stance. They already concluded that further consolidation would be grounds for investigation when they assessed the market in relation to streaming, so we call on them to act now to protect the UK market for the benefit of all – music consumers, artists and independent SME music businesses alike”.

IMPALA and its members are committed to advocating for a fair music market and will continue to engage with competition authorities across Europe, as well as the European institutions, to ensure that independent voices are heard.

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 IMPAL