The European Commission approved the acquisition of music identification app Shazam by US tech giant, Apple, after Brussels reviewed a proposed takeover under the EU’s Merger Regulation which concluded that the deal would not adversely affect competition in the European Economic Area.
“After thoroughly analysing Shazam’s user and music data, we found that their acquisition by Apple would not reduce competition in the digital music streaming market,” said Margrethe Vestager, European Commissioner in charge for Competition.
The Commission was initially concerned after the merger announced, but further research showed that Apple and Shazam mainly offer complementary services that do not compete with each other on the same market level. The EU Executive later ruled that the merger would not disrupt competition in the bloc by adversely limiting users’ choice of music streaming services in the EU.
The EU’s competition watchdog was mostly concerned with Apple’s ability to gain access to sensitive data that would allow the company to directly target competitors’ customers and push them to swap applications for Apple Music instead of its Swedish competitor, Spotify.
Shazam is already integrated with multiple services, including Apple Music, Spotify, and French analogue Deezer.