Why Is The EU Investigating Apple, Pandora?

The European Union Competition Commission has launched an investigation into premium streaming music services provided by companies that include Apple Inc. (NASDAQ: AAPL) and Pandora Media Inc (NYSE: P), according to the New York Post.

The goal of the investigation was unknown, however, it seemed EU officials were concerned that the premium service providers may be "working with music labels to limit or end their licenses with the no-fee, or freemium, services," according to the report.

Both streaming service providers and music labels had recently received questionnaires from EU regulators, according to sources who spoke to the Post.

One source who was a music industry executive said, "There is concern in the industry that Apple, with its enormous market share and distribution power and what it can do in terms of pricing and promotion can have an unfair competitive advantage," and the executive added that regulators "have a concern that big American companies are using their influence in Europe."

It was expected that the music labels would respond to EU Commissioner Margrethe Vestager sometime in the next two weeks.

Apple recently traded at $125.04, up 0.64 percent.

Pandora Media recently traded at $16.34, up 2.38 percent.