Today, the European Union has given a go-signal was given by Apple for the tech giant’s planned takeover of Shazam, the popular song-recognition app.
The tech titan got the go-ahead to continue the acquisition of Shazam from an antitrust investigation in the European Union that said that the takeover would not affect the competition in the bloc. Shazam identifies songs that are played within the range of a smartphone.
Last April, a full-scale investigation regarding the deal was started amid global concerns that tech giants would be using their market power in order to gain an unfair dominance and acquire data-rich rivals in an attempt to mine them to collect information.
However, Margrethe Vestager, the competition commissioner of the European Union, stated: “After thoroughly analysing Shazam’s user and music data, we found that their acquisition by Apple would not reduce competition in the digital music streaming market.”
Back in July, Vestager made the headlines after imposing a £4 billion fine on Google.
She continued: “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”
Apple already has Apple Music, its own digital music streaming service. It reportedly boasts approximately 42 million paying subscribers.
Shazam is able to identify music with only a short sample of the audio and is already utilized in the Siri virtual assistant of Apple. Completing the said purchase and expanding the software will likely help Apple in competing with Spotify, its rival music service. One of the newer focuses of Apple is to increase its revenue in its services segment, which includes digital offerings including apps, TV shows and movies, and iCloud storage.
The news comes a day after Facebook and Twitter were grilled by lawmakers on Capitol Hill over the steps that they had taken to clamp down on foreign interference during the 2016 Presidential elections in the United States of America.