European Commission Approves Apple's $3 Billion Acquisition of Beats

by

The European Commission has approved Apple's acquisition of Beats Electronics and Beats Music (Via Engadget). The Commission concluded that merger posed no threat to competition as "the combined market share of Apple and Beats Electronics is low."

beatsheadphones
In its decision, the Commission noted that the Apple and Beats merger would not negatively effect either the headphone or the streaming music market in the European Union.

"The Commission concluded that the combination of the two businesses did not raise competition concerns because the combined market share of Apple and Beats Electronics is low. In addition, Apple and Beats Electronics are not close competitors because the headphones they sell differ markedly in functionality and design. Moreover, even after the transaction, a large number of global competitors such as Bose, Sennheiser and Sony would remain. The Commission also examined the transaction's likely effects on the distribution of digital music to consumers. Both Apple and Beats Music are active in this field. Apple offers a music downloading service through iTunes and Beats Music offers a music streaming service, although it is currently not available in the EEA. The Commission concluded that Apple faces several competitors in the EEA such as Spotify and Deezer, making it implausible that the acquisition of a smaller streaming service that is not active in the EEA would lead to anticompetitive effects."

Now that the EU has given its approval, the next hurdle for the acquisition is the United States with regulators also examining the deal and determining whether there are any anti-competitive concerns. Barring any unforeseen issues, Apple expects the $3 billion transaction to close this quarter (Q4 2014).

Top Rated Comments

(View all)
Avatar
79 months ago
What if European commission hasn't approved it? Apple and Beats are both American, why is it Europe's concern?
Score: 2 Votes (Like | Disagree)
Avatar
79 months ago

But I do not approve of Apple's $3 Billion Acquisition of Beats.


You and me both buddy. :(:(:(:(:(
Score: 1 Votes (Like | Disagree)
Avatar
79 months ago
But I do not approve of Apple's $3 Billion Acquisition of Beats.
Score: 1 Votes (Like | Disagree)
Avatar
79 months ago

What if European commission hasn't approved it? Apple and Beats are both American, why is it Europe's concern?


It is Europe's concern because they *sell* it there. Unlike US where Corporations are free to run wild they have rules!
Score: 1 Votes (Like | Disagree)
Avatar
79 months ago
Can't believe it's a done deal...
Score: 1 Votes (Like | Disagree)
Avatar
79 months ago
I still don't get this deal. A few million dollars and an executive who should have seen this coming is all it would've taken to get a music streaming service up and running.

They certainly didn't buy beats for their mediocre headphone technology.

And if they spent $3B for a couple of guys to help them with marketing, they should've just fired Schiller and hired another proven marketing executive. They would've had billions left over for an advertising blitz for their upcoming products.
Score: 1 Votes (Like | Disagree)

Top Stories

Supposed iPhone 12 Display Unit Leaks

Thursday August 6, 2020 8:13 am PDT by
An image supposedly of an iPhone 12 display unit has been shared online by leaker "Twitter user Mr. White". Compared to images of an iPhone 11 Pro display piece, this new unit has a reoriented display connector, reaching up from the bottom of the display, rather than from the left-hand side on iPhone 11 Pro. This may be due to the logic board moving to the other side of the device. A...

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Google's $349 Pixel 4a vs. Apple's $399 iPhone SE

Wednesday August 5, 2020 1:45 pm PDT by
Google this week launched its newest smartphone, the $349 Pixel 4a, a low-cost device that's designed to compete with other affordable devices like Apple's iPhone SE. We picked up one of the new Pixel 4a smartphones and thought we'd check it out to see how it measures up to the iPhone SE, given that the two devices have such similar price points. Subscribe to the MacRumors YouTube channel ...

2020 iMac Benchmarks Surface Online [Updated]

Thursday August 6, 2020 7:16 am PDT by
Benchmarks from the new 2020 iMac have today been shared online by Mac Otakara. The Geekbench benchmarks are from the newly-released 27-inch iMac with 3.0GHz Intel Core i5 processor and Radeon Pro 5300 graphics, compared to multiple specs of the previous 2019 iMac. The lowest spec 27-inch i5 iMac from 2020 performs about 20 percent better in multicore than the lowest spec 27-inch i5...

New 27-Inch iMac's Storage Affixed to Logic Board, 4TB and 8TB Configurations Have Expansion Connector

Friday August 7, 2020 7:46 am PDT by
Following a report from German blog iFun.de that claimed the new 27-inch iMac's flash storage is soldered to the logic board, MacRumors has obtained additional information in an internal document for Apple technicians. In the document, Apple says that the flash storage is indeed affixed to the logic board and cannot be removed. However, for the 4TB and 8TB configurations, Apple says that a...

Microsoft's xCloud and Xbox Game Pass Not Coming to iOS Due to Apple's Restrictions [Updated]

Thursday August 6, 2020 1:06 pm PDT by
Microsoft's "Project xCloud" streaming game service that pairs with its Xbox Game Pass won't be available on iPhone and iPad when it launches this September, and Apple's App Store restrictions are to blame. Xbox Game Pass and its accompanying xCloud streaming feature offer access to hundreds of games that can be streamed to mobile devices, and Apple says that because it can't review each...

Apple Announces New 27-Inch iMac With 10th-Gen Processors, Up to 128GB RAM, 1080p Webcam, True Tone, and More

Tuesday August 4, 2020 8:07 am PDT by
Apple today announced a new 27-inch iMac with faster 10th-generation Intel Core processor options, next-generation AMD graphics, up to 128GB of RAM, a higher-resolution 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, a T2 chip, higher fidelity speakers, studio-quality microphones, and more. A breakdown of the new 27-inch iMac's features and specs:10th...

Samsung Launches Galaxy Note 20, Galaxy Z Fold 2, and Galaxy Buds to Compete With Apple's iPhones and AirPods Pro

Wednesday August 5, 2020 10:07 am PDT by
Samsung today held a virtual Galaxy Unpacked event where it unveiled its next-generation smartphones that will compete with Apple's 2020 iPhone lineup, set to come out in the fall. Samsung announced the launch of the Galaxy Note 20 and the Galaxy Note 20 Ultra, the two newest devices in the Note lineup, and, more notably, the Galaxy Z Fold 2, Samsung's latest foldable smartphone. The...