It's been reported that Apple Music is being investigated over its alleged anticompetitive business practices in the music streaming market!
Streaming services and record labels have been summoned by New York Attorney General Eric Schneiderman's office asking questions about Apple's Beats Music!
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Schneiderman is probing major record labels like Sony, Warner Music, and Universal Music about their contracts to license music on the streaming services. According to a source, the Attorney General is:
"Asking for documents relating to potential efforts by Apple to exclude or suppress competition in the music streaming industry."
The investigation is looking into whether Apple is coercing the labels to take down services like Spotify and YouTube by restricting their ad-supported services, or convincing the labels to raise the prices of their licenses!
Apple has already shown anti-competitive behavior within their App Store! Currently, Jay Z's Tidal service costs $9.99 a month, or $19.99 for its HiFi plan on its website. But in Apple's App Store, the Tidal subscriptions cost $12.99 and $25.99!
A rep for Schneiderman said the "ongoing investigation" is supposed to make sure the market is fair for all:
"It's important to ensure that the market continues to develop free from collusion and other anticompetitive practices."
Play nice, Apple!
[Image via Beats Music.]
Tags: apple, attorney, beats music, business blitz, investigation, jay z, legal matters, music minute, new york, sony, spotify, youtube