American Attorneys General Investigates Apple’s Music Deal
Following the news that America’s Department Of Justice and Federal Trade Commission were both investigating allegations made against Apple that it had been acting anti-competitively while developing the new music service it announced earlier this week, it’s emerged that the Attorneys General of both New York and Connecticut have also been looking into the tech giant’s musical dealings.
As previously reported, Apple is accused of trying to use its market power to pressure the majors into forcing Spotify and YouTube to cut back on their freemium services. Apple Music, of course, will offer a Beats-branded online radio station and three-month free trial, but no free on-demand element like its high-profile rivals. The original allegations came amid much speculation that Universal was putting pressure on Spotify over the freemium element while negotiating its next licensing deal with the service.
A spokesman for New York Attorney General Eric T Schneiderman confirmed to the New York Times that his office was indeed looking into Apple’s negotiations with the labels, adding, “It’s important to ensure that the market continues to develop free from collusion and other anticompetitive practices”.
Further proof of the investigation comes in the form of a letter from Universal Music to Schneiderman, which has been posted by The Verge, and in which the major insists it has not entered into any inappropriate agreements with Apple.
Commenting on the investigation, Universal Music told reporters: “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”.
According to Billboard’s sources, Warner Music was not asked any questions by Schneiderman regarding Apple’s deal making, but it is thought that Sony was.
Source: Complete Music Update
Following the news that America’s Department Of Justice and Federal Trade Commission were both investigating allegations made against Apple that it had been acting anti-competitively while developing the new music service it announced earlier this week, it’s emerged that the Attorneys General of both New York and Connecticut have also been looking into the tech giant’s musical dealings.
As previously reported, Apple is accused of trying to use its market power to pressure the majors into forcing Spotify and YouTube to cut back on their freemium services. Apple Music, of course, will offer a Beats-branded online radio station and three-month free trial, but no free on-demand element like its high-profile rivals. The original allegations came amid much speculation that Universal was putting pressure on Spotify over the freemium element while negotiating its next licensing deal with the service.
A spokesman for New York Attorney General Eric T Schneiderman confirmed to the New York Times that his office was indeed looking into Apple’s negotiations with the labels, adding, “It’s important to ensure that the market continues to develop free from collusion and other anticompetitive practices”.
Further proof of the investigation comes in the form of a letter from Universal Music to Schneiderman, which has been posted by The Verge, and in which the major insists it has not entered into any inappropriate agreements with Apple.
Commenting on the investigation, Universal Music told reporters: “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”.
According to Billboard’s sources, Warner Music was not asked any questions by Schneiderman regarding Apple’s deal making, but it is thought that Sony was.
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