The European regulators are known to give the green signal to the company Apple in December 2017 regarding the acquisition of image and the music recognition discovery firm called Shazam.
Apple music is considered to be the second largest in the music streaming service in and around Europe. It does come right after Spotify while Shazam is offering what can be described only as a leading music recognized application in the region and also globally.
Techcrunch did break the news of this particular acquisition last year. The reports state that the price of the company picking up on the veteran UK start-up to be in this region of and around $400 million. Apple did confirm this scoop in a few days later.
After 2 months, the European Union did state that they are reviewing the deal as we speak. This move is triggered due to the concerns that are being raised by various countries in the EEA also called the European Economic Area.
In the month of April, the commission did step up the review into a full-fledged investigation.
After carrying out the proper investigation, the commission did state that it is satisfied that the deal is not going to adversely affect the competition in the European economic area.
In a statement, according to the anti-trust, Chief Miss Margrethe Vestager states that data is supposed to be the key in this digital economy. We need to carefully and judiciously review all of the transactions which do lead to the acquisition of any important sets regarding data. This includes any commercial potential or sensitive data to ensure that there is no restriction to the competition. After going through Shazam’s music and user data they found out that the acquisition by Apple did not reduce the competition with regards to the digital music streamline market in any manner.
They did reach out to Apple for comments. The commission in reaching this decision did find out that Shazam and Apple mainly do offer various complimentary services that are not in competition with each other.
The investigation did look into whether Apple did obtain access to any sensitive or commercial data about the customers of the competitors for the provision of the music streamline services in the EEA. They also investigated whether the data did actually allow the company Apple to directly target any of it’s any customers belonging to the competitors and also encouraging them to switch on to Apple music. Due to this result, the music streamlines service could be put at a competitive disadvantage.
The investigation also did look into considering that Shazam is a strong position in the market with regards to the music recognition applications, whether or not the competitors of Apple music are going to be harmed in any way if the company Apple after the said transaction was to discontinue the referrals from the Shazam application to them.
The commission had also judged Shazam’s combined data user cells and that Apple is not able to confer a unique benefit or advantage regarding the merged entity in the market that is operating.