Apple Gets Antitrust Scrutiny Over Music Deals
An anonymous reader writes: Bloomberg reports that the U.S. Federal Trade Commission is probing Apple after its acquisition of Beats Electronics, and its various deals with record labels to sell music through the iTunes store. As part of the acquisition, Apple now owns the music streaming service created by Beats, and they're planning to release a new version sometime soon. This makes their ties to the record labels, already deep because of iTunes, even stronger — and could affect the labels' relationships with other streaming services, like Spotify. Investigators want to know if Apple is using these business deals as leverage for "curtailing ad-supported music and pushing more songs into paid tiers of service at higher rates."
"Sources also indicated that Apple offered to pay YouTube’s music licensing fee to Universal Music Group if the label stopped allowing its songs on YouTube. Apple is seemingly trying to clear a path before its streaming service launches, which is expected to debut at WWDC in June. If Apple convinces the labels to stop licensing freemium services from Spotify and YouTube, it could take out a significant portion of business from its two largest music competitors."
http://www.theverge.com/2015/5...