July 19, 2018
Business

EU regulators to probe Apple’s acquisition of music app Shazam

EU antitrust regulators today opened an investigation into Apples bid for British music app Shazam over fears it could restrict competition in the music streaming market.

Shazam allows smartphone users to identify a song by pointing their phones at it.

Regulators fear Apple Music could use data from the app to poach users from rival music streaming services.

Read more: Apple is closing in on acquiring London startup Shazam

Apple announced the deal in December to help it compete with streaming leader Spotify.

The European Commission said that it was worried about Apples access to Shazams users who used rival streaming services.

Read more: European Commission: Apple's bid for Shazam could hit competition in Europe

“Access to such data could allow Apple to directly target its competitors customers and encourage them to switch to Apple Music. As a result, competing music streaming services could be put at a competitive disadvantage," the EU competition enforcer said.

The probe will also look at whether Apple Musics competitors would be harmed if Apple stopped referrals from the Shazam app to them.

The Commission set a September 4 deadline for its decision.

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