Photo by Mikhail Nilov
A coalition of over 200 music executives and independent industry leaders has called on the European Commission (EC) to launch a full investigation into Universal Music Group (UMG)’s proposed acquisition of Downtown Music Holdings, an independent rights management and music services company. The $775 million deal, announced in December 2024, has sparked widespread concern across the independent music sector, prompting accusations of market distortion, infrastructure consolidation, and cultural homogenisation.
In an open letter addressed to Executive Vice-President Teresa Ribera of the EC, signatories warn that the merger would further entrench UMG’s already dominant market position – the company reportedly controls over 40% of Europe’s recorded music market, nearly twice that of its closest competitor.
The letter argues that absorbing Downtown’s infrastructure – spanning distribution, rights management, and royalty accounting services – would give UMG unprecedented power over core services used by thousands of independent artists and labels. Such consolidation, the letter claims, would create “structural dependence” on UMG, allowing the major label to act as both competitor and gatekeeper within the same ecosystem.
“This isn’t just a simple investment in one of the world’s most prominent independent companies; it is about control,” the letter states.
The letter has been coordinated by IMPALA (Independent Music Companies Association), a pan-European trade body, and has drawn backing from some of the most prominent names in independent music. Notably, executives from Beggars Group and Secretly Group, including leaders from labels such as XL Recordings, 4AD, Dead Oceans, and Jagjaguwar, feature among the 200+ signatories.
Also lending their support are executives from Domino Recordings, Ghostly International, Epitaph, !K7, Cooking Vinyl, and Blue Raincoat Music/Chrysalis Records, as well as members of ORCA (Organization for Recorded Culture and Arts) and trade groups affiliated with WIN (Worldwide Independent Network).
The independent community argues that the deal represents a serious threat to competition, innovation, and the diversity of music available to consumers. By taking control of essential digital and physical market infrastructure, UMG would be positioned to influence which artists gain visibility, how streaming revenues are allocated, and what music ultimately reaches audiences.
“Fans will hear less of the new and more of the same,” the letter warns. “Artists working outside the commercial mainstream will struggle to find traction. And a once-thriving creative economy will begin to stagnate.”
The letter also raises concerns about data access, claiming that the acquisition would provide UMG with insights into competitors’ distribution strategies, pricing, and contractual arrangements. This, they argue, would confer an unfair market advantage and erode trust in what should be neutral service platforms.
In addition to cultural and economic implications, the letter urges the EC to consider the broader structural consequences of the deal – particularly in terms of digital market dominance. It calls for a Phase 2 investigation under Case M.11956, warning that failure to act could fundamentally alter the balance of power in the global music industry.
“We must keep music open,” the letter concludes.
The EC’s initial decision on the proposed acquisition is expected by July 22, 2025, with the possibility of a more extensive investigation to follow. If the deal proceeds, UMG would secure substantial control over a company that already provides services to a vast portion of the independent sector, raising urgent questions about the future of competition, creativity, and diversity in music.
