European Regulators Concerned Apple's Proposed Shazam Acquisition Could Hurt Competitors Like Spotify

The European Commission today announced it has opened an in-depth investigation into Apple's proposed acquisition of Shazam.

The regulators are concerned that the merger could reduce choice for users of streaming music services in Europe. In particular, they believe that Apple could gain access to sensitive data that could allow Apple to directly target its competitors' customers and encourage them to switch to Apple Music.

While the European Commission did not name any specific services, Apple Music's biggest rival in Europe is Spotify, headquartered in Stockholm, Sweden. Other competitors include Deezer, Tidal, and Google Play Music.

European Commission competition chief Margrethe Vestager:

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.

In addition, the European Commission said it will investigate whether Apple Music's competitors would be harmed if Apple were to discontinue referrals from the Shazam app to them following the acquisition. Shazam's app currently integrates with multiple services, including Spotify and Deezer.

The regulators have set a September 4, 2018 deadline to reach a decision, delaying an Apple-Shazam merger for at least 90 days.

Apple announced its plans to acquire Shazam in December, describing the two companies as a "natural fit" with "exciting plans" ahead. In February, the European Commission received requests from Austria, France, Iceland, Italy, Norway, Spain, and Sweden to assess the deal under European merger law.

Shazam is a popular service that can identify the name and lyrics of songs, music videos, TV shows, and more. It has apps across iPhone, iPad, Apple Watch, iMessage, and Mac, while the service has been built into Siri since iOS 8.