The European Commission this month has cleared Apple’s acquisition of Shazam. Commission’s investigation concluded that the transaction would raise no competition concerns in the EEA (European Economic Area).
“Data is key in the digital economy. We must therefore carefully review transactions which lead to the acquisition of important sets of data, including potentially commercially sensitive ones, to ensure they do not restrict competition. After thoroughlyMargrethe Vestager, European Commissioner for Competition
analysingShazam’s user and music data, we found that their acquisition by Apple would not reduce competition in the digital music streaming market.”
The investigation of the Apple’s acquisition of Shazam started on 6 February 2018, when the Commission accepted a request from Austria, France, Iceland, Italy, Norway, Spain, and Sweden to assess the acquisition of Shazam by Apple under the EU Merger Regulation.
The European Commission found that Shazam’s data would not increase Apple’s ability to target music enthusiasts and any conduct aimed at making customers switch would only have a negligible impact; Apple would not be able to shut out competing providers of digital music streaming services by accessing commercially sensitive information about their customers; Apple would not be able to shut out competing providers of digital music streaming services by restricting access to the Shazam app; the integration of Shazam’s and Apple’s datasets on user data would not confer a unique advantage to the merged entity in the markets on which it operates.