On Monday 23 April, the European Commission opened an in-depth investigation into the US giant Apple's planned acquisition of Shazam, out of concerns that the operation will reduce the choice available to users of music streaming services.
The opening of this in-depth investigation follows an examination launched by the Commission on 6 February, following a referral request submitted to the institution by the Austrian authorities (see EUROPE 11955). The operation was then notified by the companies on 14 March.
With this transaction, two major and complementary players in the online music sector may merge. Apple provides the music streaming service Apple Music, which is number two in Europe, whilst Shazam supplies the largest music recognition app for mobile devices in the world.
In particular, the in-depth investigation aims to ensure a certain amount of choice for consumers, aiming to make sure that music lovers continue to benefit from attractive music streaming offers and do not see their choice limited following the proposed merger, the Commissioner for Competition, Margrethe Vestager, explained.
The Commission is particularly concerned that following the transaction, Apple will have access to commercially sensitive data on the clients of its competitors offering music streaming in the European Economic Area (EEA), which would allow it to target these individuals to encourage them to opt for Apple Music. The American giant's competitors could therefore be put at a disadvantage by the merger of the two companies.
The institution will also look at possible competition distortion, if Apple decided that Shazam should discontinue redirecting its clients to rival online music streaming services.
The Commission has until 4 September to reach a decision. (Original version in French by Lucas Tripoteau)