The European Union’s antitrust watchdog has announced the launch of an in-depth investigation into Apple’s proposed acquisition of song-identification app Shazam amid concerns the merger could reduce choice for users of music streaming services. In a statement, EC Commissioner Margrethe Vestager said: “our investigation aims to ensure that music fans will continue to enjoy attractive music streaming offers and won’t face less choice as a result of this proposed merger.” The EC added that the transaction announced in December and valued at EUR 400 million would combine two significant and well known players in the digital music industry that are active in complementary business areas. It has 90 working days, until 04 September, to take a decision.
The EC also expressed a concern that following the takeover of Shazam, Apple would obtain access to commercially sensitive data about customers of competitors such as Spotify and that this data “could allow Apple to directly target its competitors’ customers and encourage them to switch to Apple Music.” As a result, competing music streaming services could be put at a competitive disadvantage, said the competition watchdog.
