EU Slams Brakes On Apple’s Shazam Buy
An in-depth investigation by the European Commission is set to delay Apple’s purchase of music identification app, Shazam, by several months. Whilst both parties have refused to disclose the final value, the deal is tipped to be worth ~US$400 million – potentially one of the largest in Apple history.
The EU’s antitrust regulator is concerned by the merger of two major players in the digital music industry, thereby reducing consumer choice:
“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”.
The antitrust commission is also concerned the acquisition of Shazam will provide Apple with commercially sensitive data about its rivals.
Back in December, Apple announced its intention to purchase Shazam, affirming both companies “share a passion for music discovery”. The Californian tech giant has alluded to exciting plans following the acquisition.
According to CNN, the investigation was spurned after requests from countries such as; Austria, France, Norway, Iceland, Italy, Sweden and Spain.
The European Commission is scheduled to complete its investigation by early September, after which it will decide to approve the merger, impose conditions, or oppose it.
Founded in 1999, Shazam boasts over one billion downloads, and asserts it’s “excited about the future”:
“Shazam was one of the first apps available when the App Store launched in 2008, we have worked together on music ever since, and the whole team is excited about the future”.