Apple's acquisition of Beats gets EU approval

Apple's acquisition of Beats gets EU approval
As with every massive acquisition, the announcement doesn't really mean all that much until all of the regulatory bodies around the world sign off on the deal. Google announced intentions to sell Motorola to Lenovo back in January, but no regulatory bodies have approved that deal yet. It took about 8 months for the Microsoft/Nokia deal to be completed. Now, Apple has cleared one hurdle in its purchase of Beats Audio.

European Union antitrust regulators in the European Commission have approved the $3 billion sale, saying that the combined headphone market share will be low for Apple; and, there will still be quite a lot of competition in the headphone and streaming music markets. It is expected that the Apple deal will go through much faster than either the Motorola or Nokia deals, because there is far less antitrust concern with Apple buying Beats, and there aren't the international concerns about where money and jobs could be gained and lost, as both companies are American.

The ultimate goal of Apple buying Beats is still somewhat unclear, although the iconic Beats branding is obviously an appeal to Apple, and it does need some help with its streaming music offerings. Many still believe that the real purchase was for the star power with Dr Dre, Jimmy Iovine, and the myriad athletes and celebrities already on-board in Beats ads. Of course, the faster the deal goes through, the faster we'll get to see what Apple has planned. 

source: WSJ

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7 Comments

1. AppleIsGod

Posts: 56; Member since: Aug 27, 2012

If both companies are American, why does EU have to approve the deal ?

2. RebelwithoutaClue

Posts: 5482; Member since: Apr 05, 2013

Since both companies sell to EU customers as well,they need to abide to European laws too. This approval makes sure no company is too big to get rid of the competition in an unfair manner. Which is bad for EU customers.

3. Planterz

Posts: 2120; Member since: Apr 30, 2012

I thought exactly the same thing. I really don't get this kind of $#!+.

4. Jinto

Posts: 436; Member since: Jan 15, 2014

Eeeeeeewwwwwww

5. javy108

Posts: 1004; Member since: Jul 27, 2014

Now Beats are going to be MORE overpriced than it was before :C So sad.

6. tech2

Posts: 3487; Member since: Oct 26, 2012

By 'EU Law' they mean is to put the godforsaken, extremely annoying and excruciatingly painful MAXIMUM VOLUME LIMIT on all devices.

7. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Apple sucks, Beats sucks.........

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