The European Commission announced it will decide whether to clear Apple’s proposed $3 billion acquisition of music streaming and audio equipment company Beats Electronics by 30 July.

The deal was announced at the end of May, as Apple looks to gain ground in the rapidly-growing and lucrative music streaming market.

Beats’ co-founders, Jimmy Iovine and Andre Young (Dr Dre), 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.

Options open to the EC are to clear the deal unconditionally or demand that Apple makes concessions if it believes there are issues around competition. A further investigation could be conducted if there are deeper concerns.

When announcing the deal, Apple CEO Tim Cook said the importance of music to consumers and Apple is why the company has continued to invest in music and is “bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world”.

Eddy Cue, Apple’s SVP of internet software and services, said the deal will strengthen Apple’s music portfolio, “from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years”.

While the Beats music service will complement Apple’s own proposition, it is not a market leader in its own right. And while Beats will provide Apple with an additional hardware revenue stream, its strength has largely come through branding and marketing rather than technical prowess.

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.