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Apple's Shazam bid worries EU

by on24 April 2018


EU opens investigation

The EU is worried that the convicted anti-trust cartel owner Apple might be up to its old tricks again.

The fruity cargo cult has form when it comes to attempting to bump off competition, so when it bid for British music discovery app, Shazam, alarm bells were sounding throughout Brussels.

Now EU antitrust regulators opened an investigation on Monday into Apple’s bid for British music discovery app Shazam, concerned the deal might give the iPhone maker an unfair advantage in poaching users from its rivals.

Apple announced the deal in December, claiming that it would help it better compete with industry leader Spotify. Shazam lets users identify songs by pointing a smartphone at the audio source.

The European Commission said it was concerned about Apple’s access to data on Shazam’s users who use competing for music streaming services 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 for music streaming services could be put at a competitive disadvantage,” the EU competition enforcer said.

The investigation will also examine whether Apple Music’s competitors would be harmed if Apple halted referrals from the Shazam app to them.

The Commission set a September 4 deadline for its decision.

Apple could offer concessions such as a pledge to allow fair access to Shazam to address regulatory concerns. The EU executive launched a preliminary review of the deal in February following a request from seven European countries including France, Italy, Spain, and Sweden.

 

 

Last modified on 24 April 2018
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