NY Post: Apple Music under investigation by New York Attorney General, subpoenas issued

NY Post: Apple Music under investigation by New York Attorney General, subpoenas issued
Apple Music is formally being investigated by New York Attorney General Eric Schneiderman, according to today's New York Post. The Attorney General's office has issued subpoenas with one source stating that the office is "asking for documents relating to potential efforts by Apple to exclude or suppress competition in the music streaming industry." When Apple was negotiating with record labels, artists and producers prior to the launch of its streaming music service, there were rumors that the company was asking them to put pressure on Spotify to stop offering its free, ad-supported tier of service. While Apple does not offer a similar free level of service, it does give users a one-time three month free trial. Another rumor had Apple promising to reimburse Universal for royalties it would lose if it stopped providing music to YouTube.

Also being investigated by the New York AG is the Apple App Store where rival streaming services offer subscriptions to iOS users. Apple takes a 30% cut of the subscription fees, which is forcing streamers to either charge more for their service in the App Store, or accept a lower profit margin.

Schneiderman's office is talking to Apple's rivals in the music streaming industry, and the big names in the recording industry that supply them with content. The Attorney General says that "It’s important to ensure that the market continues to develop free from collusion and other anticompetitive practices." In addition to the New York Attorney General's office, the federal government is also looking into Apple Music with the FTC and the Justice Department talking to music industry executives.

source: NYPost


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