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
    TomTheToe, 7 Feb 2008 @ 1:58pm


    "They want to offer a service that is what people want (No details on these restrictions) at a price they would pay or even not have to pay depending on how they get it. Why is this such a bad thing?" As was brought forth in the article the last time they did this, "The DoJ investigated a number of complaints, the strongest of which was that the major labels refused to license their catalogues to competing music service providers." A collusion of this magnitude by the record companies would put all other pay music services out of business. Only Apple and Sony would be big enough to afford to license any music from the big 4 music companies. The consumer would be left with no internet music download sources except what the label would allow. No thanks.

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