Saturday, 24 February, 2018

European Union regulators to assess Apple's purchase of British music app Shazam

The EC says it will review Apple's proposed purchase of Shazam the popular music recognition app.                  Óscar Gutiérrez  CNET The EC says it will review Apple's proposed purchase of Shazam the popular music recognition app. Óscar Gutiérrez CNET
Sherri Watson | 07 February, 2018, 13:30

In a press release today the Commission said it had accepted a request by seven European countries to assess the proposed acquisition - which it says "may threaten to adversely affect competition in the EEA" (European Economic Area).

However it seems that not everyone might be on board with the acquisition, such as the European Commission who announced that they will be taking a closer look at the deal to see if it meets "competition standards".

Apple had sought approval for the deal from the Austrian competition agency because the bid falls short of the revenue threshold for an European Union review. Apple did notify Austria of the deal, however, because. Austria submitted then a referral request to the Commission pursuant to Article 22 (1) of the EU Merger Regulation.

The inquiry was sparked when Austria reportedly asked the Commission to study the deal, with France, Iceland, Italy, Norway, Spain and Sweden - the home of Apple Music's rival Spotify - subsequently entering requests. The commission said it was concerned that Apple's purchase of the market-leading company could have adverse effects on competition across borders.

Apple is a USA based global technology company which designs, manufactures and sells mobile communication, media devices, portable digital music players and personal computers.

The company's planned takeover of Shazam would be its largest since the acquisition of Beats for $3bn in 2014, the company that formed the basis of Apple's music-streaming service and line of headphones and accessories.

More information on the transaction will be available on the Commission's competitionwebsite, in the public case register under the case number M.8788.