IMPALA Responds to EU’s Universal-Downtown Deal Approval

Photo Credit: IMPALA

After spearheading a concerted effort to block the Universal Music-Downtown deal, IMPALA, AIM, and others are reacting to the European Commission’s approval of the purchase.

The mentioned entities, having voiced competition-related concerns from the get-go, reached out with responses to the long-running investigation’s outcome. And as we broke down this morning, the Commission expressed the belief that the acquisition won’t harm indies, artists, or the wider music space.

Of course, the determination aligns with Universal Music’s position (and the views of some in the indie community). But despite coinciding with an order to divest Curve Royalty Systems, it definitely isn’t the result that IMPALA and others were seeking.

To be sure, it was in mid-December that IMPALA pitched “blocking the whole deal outright” as “the best solution.” Back to its reaction, then, the organization framed the investigation itself (and, regarding Curve, the “concessions in a key economic market”) as something of a victory.

“Only 1% of all mergers notified to the EC in 2025 went to a detailed Phase II investigation,” IMPALA pointed out. “Of the two Phase II decisions that were issued in 2025, and unlike UMG/Downtown, both were cleared without remedies, again underlining the strong stance of the EU on this particular case.”

Nevertheless, IMPALA also doubled down on its reservations from the perspective of the growing “gap between the majors and the independents.”

Running with the idea, the organization intends to review the Commission’s full decision – potentially urging “further action” from there.

“IMPALA will need to assess the decision when it is published to see what further action may be needed to correct any errors,” the trade association wrote. “IMPALA consistently set out that this case is not just about data. In addition, data concerns of course extend beyond Curve and we will need to examine the Commission’s decision in this regard.”

What about positive takeaways? Well, approval aside, IMPALA described the lengthy investigative process as proof that rubber stamps aren’t the norm for industry buyouts in the EU.

Moreover, the transaction’s regulatory scrutiny could set the stage for robust reviews down the line, IMPALA indicated in different words.

“In many ways the timing of UMG/Downtown is perfect as the European Commission has a real-world case study to feed into its ongoing review of its merger regulation framework,” the organization wrote. “The EU should also have the power to call in mergers which are too small to trigger an automatic review but which are nonetheless problematic.”

Meanwhile, higher-ups including but not limited to Secretly Group co-CEO Darius Van Arman, Beggars Group founder Martin Mills, and Cargo Records Germany’s Birte Wiemann likewise weighed in.

And AIM CEO Gee Davy shifted the focus to ensuring that Universal Music affords artists and labels the “freedom to leave” the seller’s CD Baby subsidiary “without incentive or penalty.”

“We will be looking to both the UK competition authority (CMA) and the EC’s monitoring trustee to ensure fair market behaviours moving forward,” Davy said in part.

“UMG must now fully respect labels and artists freedom to leave without incentive or penalty and to follow the Digital Distribution Switch Code. There are many opportunities to work together to support and bolster the health of the independent music sector,” the former Cooking Vinyl exec concluded.