Apple May Anger The Antitrust Gods: Pressuring Labels To Stop Participating In Amazon Daily MP3 Deals
from the ftc-calling-on-line-3 dept
Yet more indications that Apple no longer thinks it can really compete in the marketplace. After finally going on the offensive and suing HTC over its Google Android phone implementation, apparently Apple is pressuring music labels over how they deal with competitor Amazon when it comes to music downloads. Paperbag alerts us to the news that Apple is supposedly demanding labels not participate in Amazon's successful MP3 Daily Deal promotion.
Sources say that iTunes representatives have been urging labels to rethink their participation in the Amazon promotion and that they have backed up those warnings by withdrawing marketing support for certain releases featured as Daily Deals.Apple's concern, apparently, is over Amazon scoring temporary exclusives for early sales. Given Apple's dominance of the digital sales market, you could certainly see the FTC reading this as being an antitrust violation. It will be interesting to see if this effort comes back to haunt Apple.
In response, label executives at Capitol, Capitol Nashville and Jive recently opted against participating in Daily Deal promotions they had been considering for Corinne Bailey Rae's "The Sea," Lady Antebellum's "Need You Now" and Ke$ha's "Animal," sources say.