Change Edition

EU clears Apple's Beats deal
Economics

EU clears Apple's Beats deal

28.07.2014 From our online archive
The European Commission said Monday it has cleared Apple's $3 billion acquisition of US headphone maker and music streaming business Beats.
A commuter listens to Beats brand headphones while riding the subway in New York, May 29, 2014. Apple Inc will buy Beats for about $3 billion and bring recording mogul Jimmy Iovine into its ranks, hoping to win points with the music industry and help it catch up in fast-growing music streaming. As expected, Beats co-founders Iovine and rapper Dr. Dre will join Apple as part of the acquisition of the music streaming and audio equipment company. REUTERS/Lucas Jackson (UNITED STATES - Tags: BUSINESS TRANSPORT)

(AFP) The European Commission said Monday it has cleared Apple's $3 billion (2.2 billion euros) acquisition of US headphone maker and music streaming business Beats.

Brussels had been concerned the takeover of Beats Electronics, founded by rapper Dr Dre and music industry giant Jimmy Iovine, by the technology giant could hurt competition as both make headphones.

But on Monday the European Union's executive arm ruled that even combined they would have only a very modest market share and face stiff competition from the likes of Bose, Sennheiser and Sony.

In terms of digital music sales, the Commission came to a similar conclusion.

Last week, audio technology veteran Bose sued Beats Electronics over the alleged use of patented technology for cancelling noise in earphones.