Apple to finalize acquisition of Shazam after EU closes investigation
After almost one full year of buyer’s anticipation, Apple will now move to finalize its $400 million dollar acquisition of music-identification application, Shazam. A European Union-enacted investigation originally stalled Apple’s ability to complete the transaction, after a group of European countries including Austria, France, and Spain expressed concern that the tech goliath could endanger fellow competitors in the streaming service market if Apple were to use Shazam as a vehicle for the presentation of new features that would function in tandem with their rapidly growing streaming platform. “After thoroughly analyzing Shazam’s user and music data, we found that their acquisition by Apple would not reduce competition in the digital music streaming market,” European Commission leader Margrethe Vestager said.
Vestager also affirmed that Apple’s “access to Shazam’s data would not materially increase [their] ability to target music enthusiasts and any conduct aimed at making customers switch would only have a negligible impact,” signifying that Apple’s newfound ownership of Shazam would not constitute a staggering advantage of any sort for Apple. Apple Music boasts a current 50 million subscribers, while Shazam reportedly represents more than 120 million monthly users. Apple Music’s association with Shazam will, however, represent growth for the tech monolith as it obtains Shazam’s sizable user base’s data, and with it, Shazam’s illustrious audio recognition technology patents.
H/T: Rolling Stone