Major Labels Under Antitrust Investigation

from the yet-again dept

Apparently the Justice Department is suddenly worried that the four major record labels are colluding in creating a new online music subscription service. The last time this happened was back when the record labels tried to (wait, this sounds familiar) create online music subscription services -- which were universally panned, rarely used and eventually shut down. So, even if the labels are colluding, given their strategic vision, it seems rather unlikely that they're going to leverage their position to dominate the market. They certainly could hold back other services -- but it seems like they've been doing that for years already, just with their own shortsightedness.
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Filed Under: antitrust, collusion, justice department, labels, riaa, subscription service
Companies: riaa


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  1. identicon
    Anonymous Coward, 7 Feb 2008 @ 1:53pm

    Subscription services are doomed if they don't allow portability. People want content on players, PC's, phones, TV's etc. whenever they want as often as they want. Any subscription service that limits portability is dead at the gate.

    Their approach raises antitrust issues because the label's would control the entire supply chain. The Justice Department takes a dim view of vertical integration/dominance.

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