“This isn’t just a simple ‘investment’… it is about control”: Over 200 music industry leaders call for an investigation into Universal Music Group’s acquisition of Downtown Music HoldingsBack in December, Virgin Music Group, a part of UMG, sought to acquire Downtown Music Holdings for $775 million. However, music industry leaders are now calling for an investigation into the deal.
According to Music Week, over 200 music industry leaders and CEOs have signed an open letter addressed to Teresa Ribera, the Executive Vice-President at the European Commission (EC), seeking an investigation into UMG’s proposed acquisition of Downtown Music Holdings.

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The letter focuses on how the deal could “stifle experimentation” as UMG already owns a large fraction of the music market – almost 40%, in fact.
Downtown Music Holdings is a large, multi-faceted rights management and music services company headquartered in New York City comprising 10 divisions across “Artist & Label Services, Distribution, Royalties & Financial Services, and Music Publishing”.
The company has over 20 offices across six continents, and its portfolio of businesses includes Songtrust, CD Baby, FUGA and Curve Royalties.
Omdia’s 2024 Music Market Shares report noted that UMG already controlled over “40% of the recorded music market”. As the open letter notes, this is already “near double the second biggest player”, which could lead to an imbalance of “control” of distribution and royalty infrastructure.
“The deal would place a significant chunk of essential infrastructure under the control of the market leader,” the letter reads. “Many independent music businesses are already tied to Downtown’s services, meaning that we would have to rely on our biggest competitor to connect our artists and their music to their fans.”
“That’s why it’s critical that the deal is reviewed through the lens of its “control share” over the digital markets economy, as well as the physical market, not just share by revenue. This isn’t just a simple “investment” in one of the world’s most prominent independent companies; it is about control.”
The letter also notes how the acquisition could “reduce choice for consumers”, as UMG has recently recently absorbed 8Ball Music, Hyperion, Oriental Star Agencies, and more. This could “narrow the range of voices, styles, and cultures” that are supported by the music industry.
“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,” the letter continues. “But when acquisitions like this one occur and start to tip the scales too far, we must act.”
“We therefore urge the European Commission to open a detailed phase two investigation to examine the deeper structural consequences of this transaction. The proposed acquisition poses a clear threat to effective competition, innovation, and the growth of the music industry across the EU and globally… We must keep music open.”
So far, the open letter has been supported by the Association for Independent Music (AIM), Beggars Group, Domino Recordings, and more.
Read the full open letter.
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