The European Commission said the deal could go through if there is a “full divestment of Downtown’s royalty accounting platform Curve”.

This would “prevent UMG from obtaining access to the commercially sensitive data of its rivals stored on Curve”, said the commission, the EU’s antitrust regulator.

It had warned in November the deal could restrict competition because Universal could gain access to such data via Curve that belongs to other music labels.

On Friday the commission said the divestment “would fully address the competition concerns” raised last year.

Headquartered in the Netherlands, UMG is the world’s biggest music company and is home to the likes of Taylor Swift, Billie Eilish and Kendrick Lamar.

US-based Downtown Music provides services to independent record labels and musicians, including managing copyright issues and helping artists collect royalties.

“By requiring the divestment of Curve, we are taking a decisive step to protect sensitive data and prevent it from being controlled by a large competitor,” EU economy chief Valdis Dombrovskis said in a statement.

“Today’s decision reflects the commission’s dedication to promoting fair competition and supporting a thriving and diverse music landscape in Europe.”

The European association of independent music companies Impala had previously warned that the merger posed risks because Universal’s dominance would grow.