Universal wins EU approval to buy EMI

European regulators approved Universal Music Group's bid to buy EMI on Friday after the companies agreed to sell off some of their combined assets.

Universal and EMI must still secure the permission of the U.S. Federal Trade Commission to complete their $1.9 billion deal.

Critics have warned that the merger, which would reduce the number of major worldwide labels from four to three, would lead to higher prices for consumers and stifle new digital music services.

Universal agreed to divest itself of about a third of EMI's assets, including its Parlophone imprint, home to popular artists including Coldplay, Lilly Allen, David Bowie and Pink Floyd.

Universal also promised to sell off some of its own assets and agreed to restrictions on its future contracts with digital music services.

"The very significant commitments proposed by Universal will ensure that competition in the music industry is preserved and that European consumers continue to enjoy all its benefits," Joaquín Almunia, the European Commission's head of competition policy, said in a statement.

Sens. Herb Kohl (D-Wis.) and Mike Lee (R-Utah), the top lawmakers on the Senate Judiciary Committee's antitrust subpanel, have urged the FTC to take a hard look at the deal, warning it presents "significant competition issues."

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