Apple’s acquisition of Shazam may be running into trouble. The European Commission, an institution of the European Union, is taking a closer look at Apple’s acquisition of Shazam and how it will adversely affect competition.
A request to look into the acquisition was brought on by Austria, Iceland, Italy, France, Norway, Spain and Sweden, all of which are part of the European Union. The European Commission will examine whether the acquisition will have certain effects on the Single Market or threaten competition in Europe. Apple now needs to ask the European Commission for approval with the stipulations already established or possibly with other conditions applied.
In December, Apple confirmed it was acquiring Shazam for $400 million. The move made sense with Apple vying to improve Siri’s capabilities. Shazam is already integrated with Apple’s voice assistant to recognize songs, but with the purchase, Apple could incorporate even more abilities into Siri.
When using Shazam, the service incorporated multiple music services like iTunes and Spotify. With Apple scooping up the service, there is a fear that services like Spotify may get completely shut out as Apple puts the focus on its own services, including Apple Music. Spotify and Apple Music together reportedly gain one million clicks per day through Shazam.
It’s also worth noting that the number one streaming service in Europe is Spotify, whose headquarters is located in Sweden. That just happens to be one of the countries that asked the European Commission to take a look at the deal.