Apple’s purchase of Beats gains EU approval
Apple’s acquisition of the popular Beats’ headphones and music service is now one step closer to completion as the company has crossed a major hurdle in the approval process.
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The European Commission announced on Monday that it has approved Apple’s $3 billion purchase of Beats Electronics.
After its study, the Commission, which analyzes various deals to ensure there is still a competitive marketplace on behalf of the European Union, found that the deal offered no competition concerns for members of the union.
“The Commission concluded that the combination of the two businesses did not raise competition concerns because the combined market share of Apple and Beats Electronics is low,” the announcement said. “In addition, Apple and Beats Electronics are not close competitors because the headphones they sell differ markedly in functionality and design.”
Announced back in May, the purchase of Beats by Apple would pay $2.6 billion upfront. The other $400 million will be payed over time.
It makes sense that the deal would get quick approval from the European Commission. With other services like Spotify and Pandora being much more popular in the music streaming market, the competition in the industry is pretty strong. In the headphone game, brands like Sony and Skull Candy continue to produce quality headsets for users as well.
Apple now has to get approval from other government agencies, including the United States, before this deal will be come final. That is expected to happen before the end of the 2014.