Universal Music in EU Approval for Downtown Deal, Must Sell Curve Unit

Universal Music Group said on Friday that its Virgin Music Group unit has received approval for its $775 million deal to acquire Downtown Music Holdings from European Union (EU) antitrust regulators after offering to sell Downtown’s royalty services platform Curve.

The music major was previously reported to have offered the divestiture to address competition concerns expressed by the European Commission (EC), the main executive body of the EU. “Following the EC’s decision and the closing of the deal, Curve Royalties will be held as a separate business until its divestment,” the company said on Friday.

Downtown is the parent company of independent distributors Fuga and CD Baby, which led the Dutch regulator to make a referral request for a EU competition inquiry.

UMG’s takeover of Downtown via the music major’s Virgin Music unit is part of the company’s consolidation strategy. But it has faced criticism from independent music players and their industry organizations, delaying the approval process. When the transaction was unveiled in December 2024, UMG said it was expected to close in the second half of 2025, pending regulatory approvals. 

IMPALA, the trade body of European independent labels, and Britain’s Association of Independent Music (AIM), representing indie record labels in the U.K., have expressed their concerns.

“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,” the organization highlighted in the past. “This threatens music fans, as well as independent artists and labels.”

In contrast, UMG has focused on the benefits of growing its reach and scale. The Downtown deal “will enhance our capabilities in serving the independent music community,” UMG CEO Lucian Grainge said last year. “By investing in businesses like Downtown that can and do support today’s leading music entrepreneurs, we can also help to advocate for advanced policies and practice that will further protect and grow the entire music system.”

On Friday, Nat Pastor and JT Myers, co-CEOs of Virgin Music Group, said: “Bringing Downtown´s exceptional team and capabilities to Virgin Music Group means greater flexibility and a sharper set of services for independent entrepreneurs, artists and labels. By uniting two culturally compatible companies with deeply complementary strengths, we’re creating a more powerful, more open ecosystem that offers independent entrepreneurs the resources, investment and technology to succeed on their own terms. We appreciate the European Commission´s thoughtful review and look forward to welcoming our new Downtown partners and colleagues as we continue to empower the independent community together.”

Added Pieter van Rijn, CEO of Downtown Music: “By joining forces with Virgin Music Group, we´re helping build a more diverse, dynamic and opportunity-rich environment – one that amplifies independence and expands the cultural impact of the extraordinary partners we serve.”