Getty Images
European Union antitrust authorities on Monday opened a full-blown probe into Apple Inc.’s proposed acquisition of the popular song-recognition app maker Shazam Entertainment Ltd., on concerns the deal could reduce choice for users of music-streaming services.
The deal would give Apple ownership of an app that helps users identify songs before directing them to Apple Music or Spotify to listen to and potentially buy or stream them. It also would give Apple access to extensive information on consumers’ musical interests. Financial terms of the deal, announced in December, weren’t disclosed.
The European Commission, the bloc’s antitrust authority, on Monday said it was concerned the deal could give Apple access to data that would allow the iPhone maker to directly target its rivals’ customers and encourage them to switch to its music-subscription service Apple Music. EU investigators said they would also probe whether competitors could be harmed if Apple were to discontinue referrals to their services from the Shazam app.
“Our investigation aims to ensure that music fans will continue to enjoy attractive music streaming offers and won’t face less choice as a result of this proposed merger,” EU antitrust chief Margrethe Vestager said.
The EU could block the deal or extract concessions from the companies in exchange for clearance.
Also popular on WSJ.com: