EU opens probe into Apple's proposed purchase of Shazam

BRUSSELS - The European Commission said on Monday it has opened an in-depth investigation to assess the proposed acquisition of British music discovery app Shazam by Apple, concerned the deal could reduce choice for users of music streaming services.

"The way people listen to music has changed significantly in recent years, with more and more Europeans using music streaming services. 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," Margrethe Vestager, European Comissioner in charge of competition policy, said.

The EU said "Apple Music" has has become the second largest music streaming service provider in Europe in the last three years, while Shazam offers the leading music recognition app for mobile devices in the European Economic Area (EEA) and worldwide.

EU regulators are concerned that, following the takeover of Shazam, Apple would obtain access to commercially sensitive data about customers of its competitors for the provision of music streaming services in the EEA.

"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 music streaming services could be put at a competitive disadvantage," the Commission said in a statement.

In a addition, the EU will also investigate whether Apple Music's competitors would be harmed if Apple, after the transaction, were to discontinue referrals from the Shazam app to them.

The Commission now has 90 working days, until 4 September 2018, to take a decision.