The European Commission has accepted a request from the Netherlands Authority for Consumers and Markets (ACM) to investigate the planned acquisition of Downtown by Universal Music Group. This acquisition raises concerns about its potential negative effects on the music market in the Netherlands and other EU countries.

Universal Music Group, the largest record company globally, aims to acquire Downtown, which provides services to independent record labels and artists. ACM fears that this acquisition could lead to higher prices for artists, a reduced supply of music, and diminished innovation in services offered to labels and artists.

Martijn Snoep, Chairman of ACM, highlighted that Universal Music Group frequently acquires independent market players, often bypassing notification thresholds due to their relatively low turnovers. This gradual accumulation of market power by Universal Music Group has raised alarms about the lack of oversight on such acquisitions. In this instance, the acquisition required notification to ACM, prompting a thorough examination of its potential effects.

Following the notification of the acquisition on February 24, 2025, ACM received complaints from market participants, indicating that the effects of the acquisition could extend beyond the Netherlands to other EU countries. Consequently, ACM requested the European Commission to conduct a comprehensive investigation, which has now been initiated. The Austrian competition authority has also joined ACM's request due to similar concerns.

Currently, not all mergers or acquisitions are required to be notified to competition authorities unless they meet specific turnover thresholds. However, ACM argues that smaller acquisitions can still have detrimental effects on competition, such as when a dominant company acquires a smaller competitor. To address this, ACM advocates for a “call-in power” that would allow it to assess smaller acquisitions that may pose risks to competition, even if they do not meet the usual notification criteria.