The acquisition of Shazam by Apple has come under the scanner of the European Commission and the merger is sure to face some heat given that the competition concerned has thrusted a question on the rightfulness of the acquisition of the song recognition service by Apple Inc.
The reason behind the reconsideration and an in depth investigation being probed by the authority is owing to a number of sensitive issues that are attached to the merger, the most one being if apple gets to have the access to the commercially sensitive data about the customer base and users of its competitors, given that such data can pose a great threat on competitors say at an instance, it might lead people to choose Apple Music over Spotify.
The manner in which people listen to music these days has changed quite a bit and online streaming of music is what people find themselves better suited to and Shazam happens to be the go to application for the same, which not just brings forth the track to the individual but also points towards to the streaming services that have the track ready to play. And in turn it also has provisions for multiple services like Google Play Music and similar such music streaming portals. But however the options are more when Shazam is an app in the android operating system and the options for other streaming portals reduce considerably when it is an app in the iOS, the options are limited to iTunes, Apple Music and Spotify.
However the merger of an app that enjoys a wide range of usage with a company such as Apple has greater implications on the music streaming industry given that it might lead to a change in the choices of the people especially the iPhone users and might lead to a change in demand for the other apps which is not perceived as something healthy in by the European commission and hence forth the investigation on its viability.
Sources have stated that the expected deadline for the approval or denial towards the merger by the commission would be 23rd of April, but however new concerns have led to the opening of a new investigation that is slated to take a period of 90 working days before a final decision can be arrived upon.
Given the popularity of Shazam amongst the users, any move by Apple to confine Shazam as an app that only promotes Apple applications would not be taken well by the public also it is yet to be known if Apple plans to completely shut down the Android version of the app. Once the merger is completed, the moves by Apple concerning Shazam would be quite interesting given that a lot of alterations can happen.
Also Apple would certainly have an edge in improving the user base of Apple Music if Shazam is completely owned by them and such can help them get an edge over counterparts such as Spotify.