The European Commission announced today that it is conducting an in-depth investigation into Apple’s proposed acquisition of Shazam The regulators fear that the merger might affect the users of streaming music services in Europe the Commission claims that Apple could gain access to sensitive data that could allow it to directly target its competitors’ customers and encourage them to switch to Apple Music.
While the European Commission did not designate specific services , is the largest competitor of Apple Music in Europe Spotify based in Stockholm, Sweden. Other competitors are Deezer, Tidal and Google Play Music. While Deezer and Tidal hardly play a role, Google Play Music is another heavyweight on the market.
The fact is: more and more Europeans use music streaming services. The investigation aims to ensure that music fans can continue to enjoy attractive music streaming offerings and will not have fewer choices as a result of the proposed merger. In addition, the European Commission wants to examine whether Apple Music’s competitors would be harmed if Apple did not allow it to redirect to them through changes in the Shazam app. Shazam’s app can currently be used with various services, including Spotify and Deezer. For Apple, it would be easy to change that.
Apple announced its plans to acquire Shazam in December 2017. In February 2018, applications from Austria, France, Iceland, Italy, Norway, Spain and Sweden were received by the European Commission to examine the project under the European merger law.