Apple under investigation for pressuring music industry to can Spotify free tier
A day after Apple, Inc. revealed its music streaming service Apple Music, it has been revealed that the tech giant is under investigation for anti-trust violations that may specifically target Spotify AG.
The attorneys general of New York and Connecticut are said to be investigating specifically whether Apple pressured the music industry to have the labels withdraw support for Spotify’s free tier (often referred to as its “freemium” level,) in favor of Apple’s paid music subscriptions.
According to The New York Times, Universal Music Group has confirmed it was cooperating with the industrywide investigation, and released a letter from the company’s legal firm, Hunton & Williams to the attorneys general that stated that Universal Music Group had no agreements with Apple or music entities like Sony Music Entertainment and Warner Music Group that would impede the availability of free or ad-supported services.
The letter added that Universal Music Group “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.”
Track record
Accusations of Apple trying to fix markets from anti-trust violations are not new, and the company has a track record in doing so, having already been found guilty of colluding with ebook publishers and fixing prices in that market.
Rumors that Apple would try something similar in the music streaming business have been floating around for some time, with fuel often added to the speculation by music industry executives, and even the likes of Taylor Swift speaking out again the ad-supported but free to use tier on Spotify.
At this stage though the investigation would seem more cautionary than based on any solid facts, and of note the two attorney general’s Eric T. Schneiderman and George Jepsen were both involved in the anti-trust ebook case; paranoid perhaps in the light that so far there seems to be no solid evidence, but again, it’s not as though Apple hasn’t done this before.
“It’s important to ensure that the market continues to develop free from collusion and other anti-competitive practices,” a spokesman said, and they’d be right; rather them keep an eye on Apple’s practices than let consumers be screwed once again.
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