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Universal Music Group’s $775 Million Acquisition of Downtown to Be Scrutinized by European Regulators
European regulators are officially preparing to investigate Universal Music Group‘s proposed $775 million acquisition of Downtown Music.
The European Commission confirmed on Friday that it has accepted official requests from Austria and the Netherlands to examine the deal’s adherence to the EU Merger Regulation; UMG trades on Amsterdam-based Euronext. “This provision allows Member States to request the Commission to examine a concentration that does not have an EU dimension but affects trade within the Single Market and threatens to significantly affect competition within the territory of the Member State(s) making the request.” In short, although the deal did not set off antitrust alarms in all countries, it did in Austria and the Netherlands. “In particular, the transaction threatens to significantly affect competition in certain markets of the music value chain, where both companies are active, in Austria and in the Netherlands, as well as in many other Member States.
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