Apple Investigated for Possible Antitrust Violations
Apple is once again into authorities' radar, the famous company being suspected of antitrust violations and collusion ahead of the Apple Music launch.
The investigation was started by attorney generals in the states of New York and Connecticut. The two states are trying to find out if Apple colluded with or pressured music companies to favor its new Apple Music service.
Authorities have started to look into the deals that Apple signed with music companies, looking for proofs on the suspected violations.
What investigators are trying to find out is if Apple worked with Universal Music, Sony Music and Warner Music to make their music less available on other competitor music streaming services.
Rumors on Apple's intentions to convince labels to stop licensing freemium services have been on for weeks. However, authorities claim that this would affect Apple's competitors and would actually be a non-competitive practice.
The investigations started almost immediately after Apple made the announcement on its new service: the Apple Music.
The release of this service was actually rumored ever since Apple purchased Beats Electronics for no less than $3 billion. The purchase was made in 2014.
At its newest event, Apple announced its brand new subscription streaming and internet radio, a service that is in direct competition with Spotify and Pandora, which are both available on the market.
Universal Music stated that it cooperated with the officials. The company claimed that it did not violate any laws in the negotiations with Apple and Connecticut's attorney general confirmed the claims.
The investigation was started by attorney generals in the states of New York and Connecticut. The two states are trying to find out if Apple colluded with or pressured music companies to favor its new Apple Music service.
Authorities have started to look into the deals that Apple signed with music companies, looking for proofs on the suspected violations.
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"We have been working with New York to investigate concerns about potential anticompetitive conduct in the music streaming industry," Connecticut's Attorney General claimed in a statement.
This... 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," the same statement added.
To preserve these benefits, it's important to ensure that the market continues to develop free from collusion and other anticompetitive practices," New York's Attorney General also stated.
Rumors on Apple's intentions to convince labels to stop licensing freemium services have been on for weeks. However, authorities claim that this would affect Apple's competitors and would actually be a non-competitive practice.
The release of this service was actually rumored ever since Apple purchased Beats Electronics for no less than $3 billion. The purchase was made in 2014.
At its newest event, Apple announced its brand new subscription streaming and internet radio, a service that is in direct competition with Spotify and Pandora, which are both available on the market.
Universal Music stated that it cooperated with the officials. The company claimed that it did not violate any laws in the negotiations with Apple and Connecticut's attorney general confirmed the claims.
At this point, we are satisfied that Universal does not have in place ‒ or in process ‒ anticompetitive agreements to withhold music titles from no-charge streaming services," he stated.It is yet to find out what the investigation will discover linked to the case.
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