The first step in the process of acquisition of Beats by Apple has been cleared. EU Regulators have given approval to Apple for the acquisition of Beats Electronics and Beats Music for $3 Billion. According to the EU commission, the buyout passes merger regulations.
The aim of the European Unions’s merger policies is to prevent harmful effects on the competition. According to the EU commission, combined marketshare of Apple and Beats in both the streaming music and headphones markets is low hence the acquisition will not affect the current competition.
The EU also said that besides Apple-Beats there are numerous other brands that deal in headphones, like Bose, Sennheiser and Sony and the top competitors in streaming music are Spotify and Deezer. iTunes Radio and Beats Music do not operate in European countries hence did not come under the purview of EU regulator, making the deal go through smoothly.
“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. “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.”
An approval is also required from American regulators, though there shouldn’t be any issues. Apple expects to close the deal by fiscal Q4.
(Via 9to5Mac and AppleInsider)