EU Probes Virgin Music's Downtown Acquisition

EU regulators are launching a comprehensive investigation into Virgin Music Group's $775 million acquisition of Downtown Music. The probe arises from concerns about potential competition impacts after Virgin Music did not address regulatory worries during the deal's review period.

The European Union's antitrust regulators have announced plans to conduct an in-depth investigation into Universal Music Group's Virgin Music Group. The scrutiny follows the latter's $775 million acquisition of Downtown Music, with concerns flagged regarding competition in the industry.

According to those familiar with the situation, Virgin Music Group had a deadline up to Tuesday to propose solutions to mitigate these regulatory concerns during the initial review of the acquisition.

However, as noted in an update on the European Commission's website, the company has not provided any remedies, prompting this escalated investigative action.

(With inputs from agencies.)