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  • Attorneys General of New York and Connecticut Investigating Apple Music and Labels

    The attorneys general in both New York and Connecticut appear to be conducting a joint antitrust investigation concerning Apple’s negotiations with record labels as part of its upcoming Apple Music streaming service. In a letter sent to New York attorney general, Eric T. Schneiderman, Universal Music Group confirmed that it is participating in an ongoing inquiry into Apple Music’s record deals according to The New York Times. The letter read the following:

    UMG shares the Attorneys General's commitment to a robust and competitive market for music streaming services in the mutual best interest of consumers, artists, services and content companies alike - and we have a long track record to that effect. We are pleased to have provided the Attorneys General information demonstrating that conduct. It is our understanding that, given these representations, the Attorneys General have no present intention to make further inquiries of UMG in this regard.
    The note, which was also addressed to Connecticut attorney general, George Jepsen, denies any wrongdoing on Universal’s behalf. The label hasn’t entered into any agreements with Apple, Sony Music or Warner music that would hinder any existing free-to-stream services. Jepsen said the following in a statement regarding the matter:

    We will continue to monitor that market to ensure that consumers and competition are protected.
    As of right now, officials appear to be investigating whether Apple influenced or otherwise colluded with record labels to drop support for competing streaming services and work with Apple instead. If they did such a thing, the actions would bolster Apple’s position in the current market and give it an unfair advantage over its competitors such as Spotify and Pandora, which offer ad-supported services.

    For those of you who didn’t know, Apple Music was announced this past Monday at WWDC as a standalone subscription-based service that costs $9.99 for a single user or $14.99 for a family that has up to six members it can add. On the other hand, competitors such as Spotify offer what’s known as the “freemium” pricing model, which consists of an ad-supported stream and step-up paid tiers for listening on-demand.

    Schneiderman and Jepsen aren’t new to the whole antitrust investigation scene either as both were previously involved in the antitrust investigation targeting Apple’s collusion with book publishers over e-book price fixing – the same one that led to a conviction in 2013. News of the matter as a whole comes one month after reports claimed that the US Federal Trade Commission was conducting its own probe over Apple’s music deals and after the European Union’s antitrust body was also said to be looking into the matter.

    We’ll have to wait to see what ends up happening.

    Source: The New York Times
    This article was originally published in forum thread: Attorneys General of New York and Connecticut Investigating Apple Music and Labels started by Akshay Masand View original post
    Comments 4 Comments
    1. hogcia's Avatar
      hogcia -
      I have zero interest in Apple music, ill stick with pandora.
    1. rolandgabor's Avatar
      rolandgabor -
      Quote Originally Posted by hogcia View Post
      I have zero interest in Apple music, ill stick with pandora.
      Apples to oranges
    1. politicalslug's Avatar
      politicalslug -
      In really enjoying Spotify premium. And they're multi platform support, including TVs, cars, and consoles, is way beyond anything Apple will have in the coming year.
    1. sheltons.iphone's Avatar
      sheltons.iphone -
      Quote Originally Posted by rolandgabor View Post
      Apples to oranges
      Not really