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Investigators fear Apple is creating another illegal cartel

by on10 June 2015


Is Cook the Oh my God Father?

US Investigators have sent their elite team of untouchable law enforcers to investigate the racketeering allegations against the self-styled book king of Cupertino – Apple.

Apple has previous form for playing monopoly in the book market and was given a stiff talking to by a US judge and a bit of a fine. Apple denied it did anything wrong, although the publisher confessed.

 But now attorneys general of New York and Connecticut are convinced that Apple is back to its old ways and is combing through the evidence to find proof.

The attorneys general want to know whether music labels colluded or were pressured into favouring Apple's paid music subscription service which is being advertised by Apple's patsys in the Tame Apple Press.

In recent months top executives at the major record labels have been sharply critical of free services, arguing that they do not generate enough money and they give consumers no incentive to pay for music. So something like Apple offering a $9.99-a-month streaming music service would be right up their alley.

Yet in a letter to the New York Attorney General, Universal Music claimed it had no agreements with Apple or music companies like 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.

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.

"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."

Apple is saying nothing and it is surprising that the investigation was reported by its favourite newspaper the New York Times. We suspect that some hack will be sleeping with the fishes tonight.

The European Commission is also looking into Apple's negotiations with the music labels.

Last modified on 10 June 2015
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