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.

apple 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.

Top Rated Comments

ideal.dreams Avatar
77 months ago
So, Apple will have to promise to continue to allow Shazam to list other streaming services when it makes referrals. They'll probably agree to that. Now, if they could just force Apple to allow the Homepod to use other services.
They should have zero control over that. Apple manufactures and sells its Homepod and has a right to limit its streaming services to Apple Music only.
Score: 24 Votes (Like | Disagree)
rorschach Avatar
77 months ago
allow Apple to directly target its competitors' customers and encourage them to switch to Apple Music.
The horror! A company trying to convince users of a competing product to switch to its own! We cannot allow that!
Score: 19 Votes (Like | Disagree)
Jakexb Avatar
77 months ago
So, Apple will have to promise to continue to allow Shazam to list other streaming services when it makes referrals. They'll probably agree to that. Now, if they could just force Apple to allow the Homepod to use other services.
Don’t understand how anyone is forcing Apple to do anything. If Spotify wants to make a Spotify speaker, are they going to be forced to support Apple Music?
Score: 18 Votes (Like | Disagree)
jayducharme Avatar
77 months ago
I don't understand how this is a problem. Shazam isn't a streaming service; it simply identifies songs. I guess Apple could engineer it so that it displayed songs only on Apple Music and tried to steer users to buy it if they don't already have Apple Music. But I'm sure in that case another app would come along to fill in the gaps.
Score: 15 Votes (Like | Disagree)
jbc25 Avatar
77 months ago
It almost sounds as though they don't actually understand what Shazam is. Like they're assuming it's another music streaming service.
Score: 13 Votes (Like | Disagree)
MacBebe Avatar
77 months ago
I don't understand how this is a problem. Shazam isn't a streaming service; it simply identifies songs. I guess Apple could engineer it so that it displayed songs only on Apple Music and tried to steer users to buy it if they don't already have Apple Music. But I'm sure in that case another app would come along to fill in the gaps.
Exactly.

It is up to the customers who they pick as their streaming service. This complain doesn't make sense.
Score: 11 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...