The European Commission has asked music industry rivals if Universal Music Group’s proposed US back catalogue sell off is enough to appease critics of the £1.2bn acquisition of EMI.
The questionnaire – issued by European regulators - asks rival music companies, independent record agencies and management companies if they are satisfied with the nature and type of businesses Universal is proposing to sell off - which include rights to the music of Justin Bieber and Rihanna.
It also asks if the divestment package “includes sufficient proportion of Anglo and/or American repertoire”.
If enough companies object to the disposals it could significantly delay the deal or mean Universal having to give up more lucrative artists. The divestment package offered by UMG does not contain any parts of either record company’s US back catalogue.
Some in the music industry have complained that the deal will destroy music diversity by putting too much power in the hands of one music company. Other leading industry figures including Ministry OF Sound's James Palumbo back the deal.
Source: The Telegraph