Apple set to get unconditional EU antitrust approval for Shazam deal

Apple will soon officially own Shazam with approval from European regulators.

  • Published: August 24, 2018 9:07 AM IST
Shazam logo cover

Apple is set to get unconditional EU antitrust approval for its acquisition of music discovery app Shazam. The Cupertino-based iPhone maker had announced its plan to acquire Shazam in December last year and the service is seen as a boost to Apple Music, which is trying to compete with Spotify, the world’s largest streaming music platform.

Shazam is an app that identifies songs when the device is near an audio source. In April, the European Commission had opened a full-scale investigation into the deal. The antitrust authority had said it was concerned that the Shazam deal might give Apple an unfair advantage in poaching users from its rivals. However, one of the biggest concerns for the EU was that Apple might halt referrals from Shazam to rival music streaming platforms.

The final decision from the European Commission is scheduled to be made by September 18, reports Reuters. The case was taken over from national EU regulators by the European Commission after requests from seven countries including France, Italy, Spain and Sweden.

According to TechCrunch, Apple is paying around $400 million for Shazam, which is much lower than the $1 billion valuation entrusted on the company during its last funding round. Apple is engaged in a fierce battle with Spotify in the race to woo consumers away from each other’s music streaming platforms.

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Apple recently announced that Apple Music has surpassed 50 million subscribers with a few million users enrolled in the three month trial program. In comparison, Spotify is estimated to have 80 million paid subscribers and another 100 million users on its ad-supported free tier model. With Shazam, Apple can make its music streaming platform even better but it is not clear whether the app will continue to be offered on rival platforms such as Android.

  • Published Date: August 24, 2018 9:07 AM IST