Universal Music Group said on Friday it submitted a filing to the European Commission addressing the regulator’s concerns that its planned acquisition of Downtown Music Holdings would thwart competition in the indie music space.
In November, the European Commission issued a statement of objections as part of its ongoing investigation into the proposed $775 million deal and required UMG to respond.
UMG said that after productive dialogue with Europe’s antitrust regulator, it submitted a “robust remedy that comprehensively addresses the Commission’s only remaining concern.”
“This deal is about offering independent music entrepreneurs access to world-class tools and support to help them succeed,” a UMG official said in an emailed statement. “We are confident that the Commission will recognize the benefits .. and clear the transaction swiftly.”
The European Commission launched its probe in July into questions over whether UMG owning Downtown could give it access to “commercially sensitive data” from rival labels through Downtown’s Curve royalty accounting and rights management business as well as its artist and label services.
The Commission said UMG “may have the ability and incentive to gain access to commercially sensitive data that is stored and processed by Downtown’s Curve, and that such an information advantage would hamper rival labels’ ability and incentive to compete with UMG.”
Downtown operates several platforms widely used by independent labels and artists, including the royalty accounting platform Curve, the distribution services FUGA and CD Baby, and the publishing administration provider Songtrust.
Organizing bodies for independent music companies in Europe have opposed the deal, saying that the data concerns over the overlap in Downtown and UMG’s businesses cannot be remedied and that the deal would hurt smaller companies’ ability to compete.
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