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Apple Music negotiations investigated in search for potential antitrust violation Apple Music talks investigated for potential anti-competitive behaviour
(about 1 hour later)
Officials are investigating negotiations between Apple and record labels to search for signs of potential antitrust violations. Just days after announcing its streaming music service, Apple is being investigatedfor signs of potential anti-competitive action over its negotiations with the music industry.
An investigation by the New York attorney general’s office, alongside its counterpart in Connecticut, is looking at whether music labels colluded over the tech group’s new streaming service, Apple Music, which was announced on Monday, or were pressured into favouring it. The investigation, by the New York attorney-general’s office and its counterpart in Connecticut, is looking at whether music labels colluded over the tech group’s new streaming service, Apple Music, which was announced on Monday, or were pressured into favouring it.
Universal Music Group said in a letter to the New York attorney general Eric Schneiderman it had no agreements with Apple or companies such as Sony Music and Warner Music that would impede the availability of free or ad-supported services, or prevent it from licensing its recorded music to any music streaming service. The investigation came to light when the New York attorney-general released a letter from Universal Music Group which said that it had no agreements with Apple or companies such as Sony Music and Warner Music that would impede the availability of free or ad-supported services, or prevent it from licensing its recorded music to any streaming service.
Universal Music also said it offers limited exclusive content to some music streaming services where such exclusivity is not part of an agreement to restrain competition. Universal Music also said it offers limited exclusive content to some music streaming services where such exclusivity is not part of an agreement to restrict competition.
“This letter is part of an investigation of the music streaming business, an industry in which competition has recently led to new and different ways for consumers to listen to music,” said Matt Mittenthal, a spokesman for Schneiderman. “To preserve these benefits, it’s important to ensure that the market continues to develop free from collusion and other anticompetitive practices.” “We understand that the investigation concerns whether participants in the music industry are seeking to act collusively to restrain competition among music streaming services, in particular, by working together to suppress the availability to consumers of free, advertising-supported, on-demand music streaming or similar services, such as those offered by Spotify and YouTube,” said Universal’s head antitrust lawyer, Eric J. Stock, in the letter.
An Apple spokesman declined to comment on the investigation. The Connecticut attorney general, George Jepsen, could not immediately be reached for comment. “This letter is part of an investigation of the music streaming business, an industry in which competition has recently led to new and different ways for consumers to listen to music,” said Matt Mittenthal, a spokesman for the New York attorney- general, Eric Schneiderman.
“To preserve these benefits, it’s important to ensure that the market continues to develop free from collusion and other anticompetitive practices.”
An Apple spokesman declined to comment on the investigation. The Connecticut attorney-general, George Jepsen, could not immediately be reached for comment.
The American investigation follows a similar pre-emptive search by European authorities in early June, before the music service was even officially announced. The Financial Times reported that several labels and digital music companies had been contacted by the European Commission ahead of the launch.
Apple Music is a $9.99 (£6.50)-a-month streaming service that has been tipped to alter the dynamics of how consumers listen to music as the industry grapples with a decline in downloads and attempts to figure out new ways to get people to pay for songs.Apple Music is a $9.99 (£6.50)-a-month streaming service that has been tipped to alter the dynamics of how consumers listen to music as the industry grapples with a decline in downloads and attempts to figure out new ways to get people to pay for songs.