Shazam Acquisition By Apple Provokes In-Depth Probe By EU Commission

Getting the attention of the EU Commission is almost never a good thing for any company and in the recent case of Apple, it could get in trouble for acquiring Shazam. The union has a major issue when it comes to monopolies and companies having too much influence over the market. That is why the commission is now looking into whether or not the acquisition is going to be good for consumers.

In a press release, EU commissioner Margrethe Vestager explains the commission’s concerns with regards to how the acquisition could affect the way consumers listen to music. After all, consumption of digital content has changed ever since streaming became mainstream.

"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," Commissioner Vestager said.

A particular issue for the commission is the matter of the data that Shazam already has of its users. The regulators are basically concerned that the acquisition would give Apple access to information that pertains to the music streaming services of competitors, which could enable it to steal the customers away from them.

"Access to such data could allow Apple to directly target its competitors' customers and encourage them to switch to Apple Music. As a result, competing music streaming services could be put at a competitive disadvantage," the press release noted.

The commission has until September to conclude its investigation, CNBC reports. This has become a particularly important detail for the EU Commission since it is trying to wrap investigations faster due to developments in the tech industry speeding up exponentially. Spending months on a single issue could cause a backlog.