Music companies under investigation for possible online music price-fixing
Posted by Dr. Macenstein
The Associated Press is reporting that New York’s Attorney General Eliot Spitzer has subpoenaed several of the major music companies as part of a preliminary inquiry into whether the digital music services have engaged in any illegal price-fixing activity.
You may remember in September that Steve Jobs claimed music companies were acting ”greedy” and had been putting pressure on Apple to raise music prices on its iTunes service. Sony BMG Music Entertainment, Vivendi Universal, and Warner have all admitted receiving subpoenas.
”As disclosed in our public filings, we are cooperating fully with the inquiry,” Amanda Collins, a spokeswoman for Warner Music Group, said in a statement.
Earlier this year the music industry was investigated by Spitzer’s office in a “play-ola� scandal. As a result, Warner Music agreed to pay $5 million to settle an investigation into payoffs for radio airplay of artists. In July, Sony BMG agreed to pay $10 million and stop bribing radio stations to feature artists.
what are they implying?
are they saying 99¢ is too high, or are they saying they are trying to illegally raise the price?