Universal Music's proposed $775 million acquisition of Downtown Music is facing an EU investigation.

The European Commission announced on April 25th that it has accepted requests from Austria and the Netherlands to conduct an assessment of Universal Music Group's proposed acquisition of Downtown Music Holdings under the EU Merger Regulation. The statement noted that the transaction could have a significant impact on competition in certain segments of the music value chain where both companies are active. The European Commission has requested Universal Music Group to notify the transaction, and the company is not allowed to proceed with the acquisition until the notification is completed and approved.