A Closer Look at the EU’s Concerns and Implications
The European Union (EU) has been keeping a close eye on Apple’s plans to acquire Shazam, a music recognition app that allows users to identify songs playing around them. In February, the EU noted preliminary competitive concerns regarding the deal. Today, the EU announced an ‘in-depth’ investigation into the proposed acquisition.
Commissioner Margrethe Vestager Weighs in
In a press release issued earlier today, Commissioner Margrethe Vestager expressed her concerns about the potential impact of the merger on European music fans. She stated:
"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."
Apple Music and Shazam: A Complex Relationship
The EU’s investigation highlights the complex relationship between Apple Music and Shazam. While they serve different functions, with Apple Music being a music streaming service and Shazam identifying songs, the Commission is concerned that Apple will use Shazam to direct users to its music streaming service.
Competitive Disadvantage for Competing Services
The Commission’s main concern is that competing music streaming services could be put at a competitive disadvantage if Apple uses Shazam to promote its own service. This could lead to a reduction in choice for European music fans, as they may not have access to the same level of competition.
Discontinuation of Referrals: A Possible Stipulation
The Commission is also investigating whether Apple would discontinue referrals from the Shazam app to competing music streaming services if the acquisition goes through. This could further exacerbate the competitive disadvantage faced by other services.
A Prohibition on Discounted Referrals?
Based on the sound of things, it seems likely that the EU will attach stipulations to the deal, including a prohibition on discounted referrals from one service to another. This would ensure that competing music streaming services continue to have access to Shazam’s user base and can promote their own offerings.
Apple Responds: A Comment Requested
TechCrunch has reached out to Apple for comment, but so far, there has been no response. As the investigation unfolds, it remains to be seen how Apple will address the EU’s concerns and what stipulations may be attached to the deal if it goes through.
Implications and Future Developments
The EU’s investigation into Apple’s acquisition of Shazam highlights the complex issues surrounding mergers and acquisitions in the tech industry. As the Commission continues its inquiry, it is likely that we will see more developments in this story.
What’s at Stake?
At stake are not only the competitive dynamics between music streaming services but also the level of choice available to European music fans. The EU’s investigation aims to ensure that consumers continue to have access to a wide range of options when it comes to music streaming.
A Complex Web of Interests
The Apple-Shazam deal is just one example of the complex web of interests in the tech industry. As companies like Apple continue to grow and expand their offerings, they must navigate the regulatory landscape and ensure that their actions comply with antitrust laws.
Conclusion
The EU’s investigation into Apple’s acquisition of Shazam highlights the need for careful consideration when evaluating mergers and acquisitions in the tech industry. As we move forward, it is essential to prioritize transparency and accountability in these deals to ensure that consumers continue to have access to a wide range of options and choices.
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