Back in May 2014, Apple announced that they intended to buy the headphone manufacturer Beats. The price was $3 billion and the deal made headlines around the world.
Together, the two would make for a formidable force in the audio and music industries, particularly with Apple’s massive catalogue of music applied to Beats’ new online music streaming service. That service was a big factor in the acquisition, which should see Apple making great strides into this vital new market.
With great mergers though comes great responsibility and the deal has been under review by the European Union since it was announced. The investigation was all about deciding whether the combination of the two companies represented too much of a threat to fair competition throughout the EU, for example by cornering the market on headphone production would Apple be making it too difficult for smaller companies to continue to make a profit.
Two months on and the result is in, with the EU approving the deal. They came to the conclusion that Apple’s share of the headphone market would still be comparatively low across the continent and that there were plenty of larger companies already operating in the space.
And in terms of streaming music, with the likes of Spotify and Deezer currently available, Apple would have to spend plenty of time playing catch up.
It’s not yet clear what plans the company has for streaming or the Beats brand, though it’s likely they’ll operate as separate companies. But with two massive names coming together, we’re undoubtedly in for some amazing new developments in the worlds of streaming music and personal audio.
In Short: We’ve finally heard from an EU commission that the sale of Beats to Apple for a cool $3 billion has been approved