The Federal Trade Commission on Friday gave an unqualified thumbs up to the $1.9 billion acquisition of EMI Music by Universal Music Group, a deal that reduces the number of major labels in the U.S. market from four to three.
In a statement, Richard Feinstein, the FTC's director of the Bureau of Competition, said that the agency "did not find sufficient evidence that the acquisition would substantially lessen competition in the market for the commercial distribution of recorded music in violation of Section 7 of the Clayton Act."
The European Union also signed off on the deal on Friday, but required Universal to divest several business units as a condition of approval. Feinstein noted that the "remedy obtained by the European Commission to address the different market conditions in Europe will reduce concentration in the market in the United States as well."
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