DOJ Examining Apple's Online Music Practices

In what sources say is the beginnings of an antitrust enquiry, the New York Times reports that the U.S. Department of Justice is examining Apple's tactics in the market for digital music, and its staff members have talked to major music labels and Internet music companies.

NYT cites several people briefed on the conversations who say that although things have, for the most part, revolved around the dynamics of selling music online, investigators are also asking about recent accusations that Apple used its dominant market position to persuade music labels to refuse Amazon exclusive access to new music.

According to the Times, a March Billboard Magazine reports claims that Amazon went to music labels seeking a day of exclusive access to new songs. In exchange, Amazon would feature the tracks on its website as part of a promotion called the "MP3 Daily Deal." However, the Billboard report says that Apple representatives urged the labels not to participate, and Apple is said to have punished those that did by withdrawing marketing support for those songs on iTunes.

Read more here.

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  • drutort
    are there any companies left that dont practice dirty success methodology?
    (mind you i was not surprised about this at all, just speaking are there any regular legit companies on such scale)
  • greenspoon
    I must be reading this wrong. What I read is that Apple is being investigated for antitrust violations partly due to them using their dominant position in the online music market to stop Amazon from having an exclusivity contract with certain labels. Now, I will not say that I am the most intelligent person around, but it would seem to me that Apple just used its position to make the music available from multiple sources, which is the opposite of monopolistic practices.

    Also, they are said to have 'punished' those that would sign such an agreement, which makes total sense to me. Why should I advertise for something I can not make money on?

    Am I missing something?
  • Kelavarus
    Apple using shady business tactics? Color me surprised!

    Though, to be honest and non-foaming-at-the-mouth-anti-apple, GreenSpoon really does have a good point. Technically they were using underhanded tactics to encourage open markets. Do a right and a wrong make a neutral?