BRUSSELS ― The European Commission announced it will launch a full-scale antitrust probe into Universal Music Group (UMG)’s proposed acquisition of Downtown Music over concerns that it will restrict competition in the music industry.

The deal involves UMG’s Virgin Music Group acquiring key assets of Downtown, including distributor FUGA and digital distribution service CD Baby.

Universal is the home of some of the world’s most famous musicians, including Taylor Swift, Elton John and Sabrina Carpenter.

Independent record label exec Martin Mills — most famous for discovering Adele — previously told POLITICO that the merger could deal a fatal blow to the production of alternative music producers.

“If it were not for the independents, there would be no hip hop, no punk, and no Elvis Presley,” said Mills.

The Commission said it had reservations regarding the $775 million acquisition of a key provider of digital services for indie record labels. 

“By acquiring Downtown, UMG would purchase a large provider of services for labels that compete with UMG and for artists,” said Economy Commissioner Valdis Dombrovskis.

Competition Commissioner Teresa Ribera recused herself from the review due to a conflict of interest arising from a family member working for one of the companies.

The merger was not big enough to trigger an automatic review by the Commission. It was referred to the EU executive by competition authorities in the Netherlands and Austria following complaints from indie labels that it would give the the major commercial record label control over key production inputs.

The Commission will investigate the transaction over the next 90 days and is expected to come to a conclusion by November 26.