EU Clears Universal Music Group's $775 Million Downtown Acquisition

By Edith Hancock

The European Union approved Universal Music Group's $775 million acquisition of Downtown Music after the companies offered concessions, ending a lengthy investigation by the bloc's competition officials.

The companies offered to sell Downtown's Curve royalty accounting platform in December in an effort to win Brussels's blessing for the deal. Officials had voiced concerns it could have given Universal--the world's largest music record company, whose roster includes artists like Taylor Swift, Billie Eilish and Lady Gaga--access to commercially sensitive data from rival record labels.

Universal's Virgin Music announced the deal--which would see the music giant buy Downtown for $775 million in cash--in December 2024 in a bid to tap into its music publishing, distribution and royalties services.

But the acquisition has faced fierce opposition from smaller record labels that are already concerned by Universal's existing dominance in the industry. The EU's merger watchdog launched an in-depth investigation into the deal in July before issuing a formal statement of objections in November.

"By requiring the divestment of Curve, we are taking a decisive step to protect sensitive data and prevent it from being controlled by a large competitor," Valdis Dombrovskis, the EU's economy commissioner, said in a statement Friday. The decision reflected the EU's goal of promoting fair competition and a diverse music landscape in Europe, he said.

Universal's Virgin Music said the commission's investigation was the final regulatory hurdle for the deal, which it now expects to complete in the coming weeks.

"The deal will bring together two industry-leading providers of music services and technology, enhancing their offerings and capabilities to serve the independent music community," the company said.

The EU-level regulator decided to look into the music giant's takeover--which falls below the bloc's typical merger review thresholds--after competition authorities in the Netherlands and Austria flagged it to Brussels for investigation.

Write to Edith Hancock at edith.hancock@wsj.com

(END) Dow Jones Newswires

February 13, 2026 06:10 ET (11:10 GMT)