Original URL: http://www.reghardware.co.uk/2006/03/03/doj_music_probe/
US Department of Justice investigators have begun to probe major music labels' download pricing policies, sources close to the world's four biggest recording companies told Billboard magazine.
According to the report (http://www.billboard.biz/bb/biz/newsroom/business_finance/article_display.jsp?vnu_content_id=1002115137), the DoJ has started sending out subpoenas to Warner Music Group, EMI, Sony BMG and Universal Music Group, though only EMI would comment officially, claiming it had yet to receive anything from the DoJ.
The DoJ has not yet confirmed the investigation, which is believed to parallel a similar probe being conducted by New York State Attorney General Eliot Spitzer. That enquiry began looking at the way labels promote music on the radio, but is believed to have been extended to digital music pricing, with subpoenas sent out (http://www.theregister.co.uk/2005/12/26/spitzer_download/) late last year.
Spitzer is concerned that the major labels may have effectively colluded to set download wholesale prices by imposing terms and conditions that ensure none of them get a worse deal than the rest.
Whether that's anti-competitive or not is open to question. Consumers buy by artist not by price, and since the labels have exclusive rights to individual recordings, there's little or no scope for direct price competition. How likely is it, for example, that a Tom Petty buy Wildflowers (on Warner) rather than, say, Southern Accents (on UMG subsidiary label MCA, now Geffen) solely because it's 10 cents a track cheaper to download? ®
Warner faces 14 download overcharging cases (8 May 2006)
http://www.theregister.co.uk/2006/05/08/warner_sued_downloads/
Class action for music downloads (14 March 2006)
http://www.theregister.co.uk/2006/03/14/class_action_music_downloads/
How the digital revolution screwed songwriters. Twice. (3 March 2006)
http://www.theregister.co.uk/2006/03/03/songwriters_dmf/
iTunes' long march to market share (2 March 2006)
http://www.reghardware.co.uk/2006/03/02/dmf_2006_itms_numbers/
Songwriters to blame for digital music's pothole (1 March 2006)
http://www.theregister.co.uk/2006/03/01/dmf_2006_songwriters/
Amazon tuning in to music downloads, says paper (16 February 2006)
http://www.reghardware.co.uk/2006/02/16/amazon_music_downloads/
Time Warner embraces P2P (30 January 2006)
http://www.reghardware.co.uk/2006/01/30/timewarner_moves_p2p/
Norway accuses iTunes of consumer-rights violations (27 January 2006)
http://www.reghardware.co.uk/2006/01/27/norway_itunes_complaint/
Music sales slide despite RIAA's crushing blows against piracy (31 December 2005)
http://www.theregister.co.uk/2005/12/31/riaa_2005_piracy/
New York AG starts per-label subpoena store (26 December 2005)
http://www.theregister.co.uk/2005/12/26/spitzer_download/