Brussels: The European Union on Friday approved Universal Music's acquisition of the US-based Downtown Music for USD 775 million on condition that Downtown's royalty accounting platform known as 'Curve' is fully divested.
According to Kuwait News Agency, the European Commission, which is responsible for competition and antitrust regulation in the EU, stated that the deal can proceed if there is a "full divestment of the Curve platform." This condition is intended to prevent Universal Music from accessing commercially sensitive data belonging to its rivals and stored on the platform.
The Commission further noted that this measure would "fully address competition concerns" and ensure a level playing field in the EU music services market.
Virgin Music, the Universal Music unit that will take over Downtown, expressed its approval of the Commission's decision, as did Downtown itself. Both entities emphasized that the decision allows the deal to move forward while maintaining fair competition requirements in the European market.