BUSINESS

Apple’s Shazam Deal: Initial Investigations Reveal Threats

European Commission's Investigations into Apple's Shazam Deal Warrant Comptetitve Risk to European Music Streaming Marketplace

Apple’s Shazam Deal

Initial Investigations into potential competitive risks of Apple’s Shazam Deal point to the music-streaming marketplace. The European Commission was set to make the final decision as to allow the Apple’s Shazam deal on April 23, 2018. However, they announced that the merger regulation would require 90 more days of the investigation.

The primary concerns of Apple’s potential to harm the European economy are now focusing on the music-streaming market. This concern focuses in on Apple Music’s potential to outperform European music-streaming competitors, such as Spotify. Especially relevant, this presents the notion that the competitive risks are within the music-streaming economy with Europe subject to harm.

Furthermore, the European Commission will examine this notion under the condition that Apple discontinues making referrals to their brand from the Shazam application. The investigation is to conclude on September 4, 2018.

A Threat to European Music Streaming

Apple’s claims to Shazam’s European user-base presents the potential to cause harm to the music-streaming market of the European Economic Area (EEA). Initial investigations meant acknowledging the conversion of Shazam’s user-base to Apple Music.

music streaming

The conversion of European users to foreign brands risks the European market. The harm this may cause within Europe’s Music-Streaming Market is now of concern. The dynamic of conversion of European users from referrals to Apple made on Shazam are also suspect to harm European competitors.

Apple’s Influence

Discontinuing Apple’s referrals made on Shazam will further allow for the European Commission to test for the cause-effect relationship. Ultimately, cause and effect are subject to debate as much as it is subject to understanding. Although there is questionable validity to this investigation, a valid decision is not beyond reach.

music streaming

Eventually, a decision as to the fate of Apple’s Shazam deal will transpire. The next 90 days will provide enough time to wager an understanding of Apple’s economic influences in the European Music-Streaming marketplace.

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Eric Niebergall
the authorEric Niebergall
Music Blogger
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