Before the $3 billion Apple–Beats deal is finalized, it will have to gain regulatory approval from the European Commission, Reuters reports.
When Apple announced the acquisition, it also mentioned that it expects the transaction to close in fiscal Q4. From this perspective, it is obvious that Apple was aware of the approval it needed in order to finalize the merger.
According to Reuters, the European commission will analyze the deal and has the power to either clear it unconditionally or demand concessions if it sees competition issues. It can also open an extensive investigation if it has deeper concerns.
As Tim Cook said, Apple acquired Beats because the company views music as a key to society and culture. And music is deep in Apple’s DNA, just like education. As part of the deal, both Dr. Dre and Jimmy Iovine joined Apple without mentioning the exact positions they would take in the company.
The European Commission will announce their decision on the deal by July 30.