Open letter warns deal could harm competition and cultural diversity.
Photo credit: UMG – Official
A coalition of over 200 music industry CEOs and founders has signed an open letter urging the European Commission to investigate Universal Music Group’s proposed acquisition of Downtown Music Holdings.
Addressed to Teresa Ribera, Executive Vice-President of the European Commission, the letter raises concerns over the US$775 million deal, warning it could “stifle experimentation” and harm the independent sector. Downtown Music, based in the US, provides artist services, rights management, and royalty infrastructure to a wide range of independent labels and creators.
The letter argues that by acquiring Downtown, UMG would further consolidate control over distribution and back-end infrastructure, reducing choice for artists and consumers. It claims this could threaten effective competition, innovation, and cultural diversity.
“Everyone has a role to play – from the biggest music company in the world to the independent disruptive start-up uncovering new genres and sounds. But when acquisitions like this one occur and start to tip the scales too far, we must act,” the statement reads.
According to the signatories, UMG already holds over 40% of Europe’s recorded music market, nearly twice that of the next largest company, citing 2024 data from Omdia. “By absorbing Downtown’s distribution, royalty accounting, and rights management capabilities – services used by thousands of companies and artists across the independent sector – UMG would further entrench its already significant market power,” the letter adds.
The call follows similar concerns over UMG’s past acquisitions in the independent space, including PIAS, Hyperion, and Oriental Star Agencies. The letter has received support from key organizations, including Beggars Group, AIM, Ghostly International, City Slang, and Domino Recordings.
The coalition is calling for a full investigation to examine the “deeper structural consequences” of the transaction.
View the full letter here.