The European Commission approved Apple’s $3 billion acquisition of US-based headphone and music streaming company Beats.

The deal was announced at the end of May, as Apple looks to gain ground in the rapidly-growing and lucrative music streaming market. The European Commission announced in June that it would decide whether to clear Apple’s proposed acquisition of Beats by 30 July.

Despite Apple also selling headphones in the European Economic Area (EEA), the Commission decided that the merger of the companies would not raise competition concerns due to their low combined market share.

In addition, the headphones sold by each company “differ markedly in functionality and design” and there would be a large number of competitors remaining following the merger, such as Bose, Sennheiser and Sony.

Apple and Beats are also active in digital music distribution. Apple’s iTunes services offers music downloads, while Beats Music focuses on streaming. However, Beats Music isn’t available in the EEA.

Given the region has the likes of Spotify and Deezer to compete with Apple, and Beats isn’t even available, the Commission concluded the merger would not have an anticompetitive impact.

It also concluded that the deal “would not give Apple the ability and incentive to shut out competing streaming services from access to iOS”. This was based on the fact that Apple is already active in distribution of music, meaning the merger would not change its incentive to block access.

Beats Electronics was founded in 2008 by Jimmy Iovine and Andre Young (Dr Dre), to make headphones and audio speakers, with Beats Music spun out in 2013, offering music streaming in the USA and Australia on a subscription basis.

The co-founders of Beats will join Apple as part of the agreement. Some $2.6 billion of the purchase price will be paid immediately, with approximately $400 million due to vest over time.

Taiwanese device maker HTC previously held a significant share in Beats, with branding featuring in its high-end smartphone portfolio. But the company sold its final shareholding in Beats last year.

Last week, Beats Electronics was sued by fellow headphone maker Bose, for infringing patents related to its active noise reduction technology, costing it sales as a result.

The timing of the legal action by Bose, coming just before the European approval, may prompt a quick settlement from Beats in order to avoid legal uncertainty that could put the Apple deal at risk.