It seems Apple’s acquisition of Shazam isn’t yet accepted by all regulatory bodies. According to reports, the European Economic Area (EEA) is looking into the deal and is concerned that Apple buying Shazam might reduce the options available for competing platforms.
The Commission's initial market investigation raised several issues relating to the combination of Shazam's strong market position in the music recognition apps market and Apple's market position in the music streaming services market.
The decision apparently comes after Spain, Austria, France, and Iceland requested the EU to analyze and look into the acquisition.
The decision apparently comes after Spain, Austria, France, and Iceland requested the EU to analyze and look into the acquisition. The commission apparently thinks that the deal may have “significant adverse effect” on Apple and Shazam’s competitors, in the EEA’s area. The deadline for the current investigation is set for September 4.
“The way people listen to music has changed significantly in recent years, with more and more Europeans using music streaming services. 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,” Margrethe Vestager, EU’s competition commissioner has said in a statement.
The deal between the iPhone maker and London-based developer and distributor of music recognition applications for smart devices had been confirmed recently by Apple. When confirmed in December, the deal was worth $400 million.
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