European Commission accepts ACM’s request regarding the acquisition of Downtown by Universal Music Group

The European Commission has announced that it has accepted the request of the Netherlands Authority for Consumers and Markets (ACM) to assess the planned acquisition of Downtown by Universal Music Group.Universal Music Group is the world’s largest record company in the music industry. Downtown provides services to independent record labels and artists. ACM has concerns that the acquisition can have negative effects in the Netherlands and other EU countries, such as higher prices for artists, a reduced supply of music, and less innovation in services for labels and artists.

Martijn Snoep, Chairman of the Board of ACM, says: “Universal Music Group often makes acquisitions of independent market participants in the music industry. Many of these acquisitions do not meet the notification thresholds, because the acquired companies have relatively low turnovers in the Netherlands or other countries. As a result, Universal Music Group is gradually increasing its market position, without the competition authorities being able to properly assess these acquisitions. In this case, the acquisition did have to be notified with ACM. It is important that the effects of this acquisition are properly examined.”

The acquisition’s effects at the European level

Universal Music Group and Downtown notified the acquisition with ACM on 24 February 2025. Shortly after that notification, ACM received complaints from market participants about this acquisition. Since Universal Music Group and Downtown operate worldwide, ACM expects that the effects of the acquisition will be felt in other EU countries too. That is why ACM has asked the European Commission to conduct the investigation. The European Commission has now accepted the request, and has launched an investigation. Universal Music Group and Downtown also notified the Austrian competition authority of the acquisition. It, like ACM, had concerns, and decided to join in ACM’s request.

Merger control: a new power is needed

Not every merger or acquisition has to be notified with a competition authority. Only if the merging companies meet certain turnover thresholds, do these companies have to notify competition authorities of their merger or acquisition first. However, acquisitions that fall below those notification thresholds can also have negative consequences for consumers and businesses. For example, when an already dominant business buys a smaller, rising competitor, or if competition takes place at a local level or in niche markets. The market power that can emerge as a result leads to higher prices, reduced quality, and less innovation.

That is why, in the Netherlands, ACM is in favor of the introduction of a “call-in power”. That means that ACM does not need to be notified of all smaller acquisitions, but only those that ACM at first glance believes could be problematic for people and businesses in the Netherlands. ACM will then be able to assess those acquisitions in the usual manner or it can refer them to the European Commission if the effects of an acquisition occur in other EU countries as well.

See also

• Europese Commissie (external website)
• Universal Music Group wishes to gain exclusive control over Downtown Music Holdings (concentration notification) (in Dutch)
• Blog Martijn Snoep: Small mergers, big problems