In a press release, the European Commission has given the OK for the Apple-Beats deal. The commission said the merger would not have an adverse effect on consumers.
The commission cites the relatively low market share in the headphone market between the two companies as the primary reason for the deal not hurting consumers. Plus, the headphones from the two companies “differ markedly in functionality and design” according to the commission.
The European Commission also addressed the other product category Apple was acquiring with its Beats’ purchase.
“The Commission concluded that Apple faces several competitors in the (European Economic Area) such as Spotify and Deezer, making it implausible that the acquisition of a smaller streaming service that is not active in the EEA would lead to anticompetitive effects,” it said in a press release. “The Commission also concluded that the transaction would not give Apple the ability and incentive to shut out competing streaming services from access to iOS, Apple’s operating system for mobile devices.”
U.S. regulatory approval should also be a breeze for Apple.
So, what’s going to happen to the Beats Music app? It will continue to exist and Apple says it will keep the app available on other platforms including Android and Windows Phone. It would be the first and probably only Apple app to appear on competitors app stores.
Look for Apple to ramp up development of Beats Music as it looks to compete with services such as Spotify. Apple’s usually not one to work from behind. But, they definitely are in the music streaming landscape.
Apple expects to have the complete regulatory approval for the Beats deal by the end of September.