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Apple’s Shazam acquisition to be examined by the European Commission

Apple’s Shazam acquisition to be examined by the European Commission

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It could stifle European competition

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Photo: Shazam

The European Commission, a group that promotes the interests of the European Union, says it’s going to examine Apple’s Shazam acquisition with the deal’s effects on competition in mind. Multiple countries, including Austria, France, Iceland, and Spain requested that the Commission assess the acquisition to determine whether it’s allowed under a European Union merger law.

Basically, these countries want to know how big of a threat Apple owning Shazam could be to local competition. Apple will now have to ask the Commission to approve the deal, which the EU regulator could sign off on with or without extra conditions. It could also open an investigation if it has bigger concerns.

Apple acquired Shazam in December for an undisclosed sum, although the deal is reportedly worth around $400 million. We haven’t yet seen what Apple plans to do with the company, but it could incorporate the song-identifying tech into Apple Music. The Shazam app is still live, but if Apple shuts it down, Spotify would lose referrals. Spotify and Apple Music together gain 1 million clicks per day through Shazam. That could be part of the EU Commission’s concerns.