Apple-Shazam Merger Gets Approval From European Union Following Investigation

The European Union (EU) has approved Apple’s merger with song-recognition app Shazam after months of investigating the deal for its possible impact on the music-streaming business.

The EU’s Antitrust Commission announced Thursday that the acquisition wouldn’t be harmful to other music-streaming services. The commission’s main concern was that Apple Music could acquire data about rivals' customers by owning Shazam.

"Data is key in the digital economy. We must therefore carefully review transactions which lead to the acquisition of important sets of data, including potentially commercially sensitive ones, to ensure they do not restrict competition," EU competition commissioner Margrethe Vestager said in a statement. "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."

The Commission also said Apple would not be able to shut out competing providers by restricting access to the Shazam app. It added that the app had "limited importance as an entry point to the music streaming services of Apple Music's competitors."

Apple revealed plans to buy Shazam in December, making it one of the company’s most significant acquisitions with its value estimated at $400 million. In April, EU antitrust officials opened an investigation into the Apple-Shazam deal over concerns that it would lead to the iPhone maker obtaining information about consumer data, possibly giving the company an unfair advantage over other music-streaming sites.

Launched in 2002 by Shazam Entertainment Ltd, the app recognizes songs when the user points their device where the music is playing. It can also identify movies, advertising, and television shows based on a short audio clip, similar to the way iPhone’s digital assistant Siri.

Shazam announced in 2014 that its technology has been used to identify 15 billion songs. In 2016, it revealed that its mobile app had reached over 1 billion downloads. The company has about 250 employees.