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DOJ Probes Music Pricing
Feds investigate price fixing by record companies and online music services.
March 3, 2006
The U.S. Department of Justice has opened an investigation into the pricing of online music downloads and collusion among major record companies on how songs are sold over the Internet.
On Monday, the DOJ sent out civil investigative demands to the four major music corporations: EMI, Sony BMG, Universal Music, and Warner Music Group, according to The Wall Street Journal. The demands are similar to subpoenas, but are not criminal in nature.
A DOJ spokesperson declined, however, to comment on whether the demands had been sent.
?The antitrust division is looking into the possibility of anticompetitive practices in the music download industry,? Gina Talamona, a spokesperson for the DOJ, told RedHerring.com on Friday.
The investigation follows on the heels of a probe launched by New York State Attorney General Eliot Spitzer into how the record companies set the prices for music downloads.
DOJ Probes Music Pricing
Feds investigate price fixing by record companies and online music services.
March 3, 2006
The U.S. Department of Justice has opened an investigation into the pricing of online music downloads and collusion among major record companies on how songs are sold over the Internet.
On Monday, the DOJ sent out civil investigative demands to the four major music corporations: EMI, Sony BMG, Universal Music, and Warner Music Group, according to The Wall Street Journal. The demands are similar to subpoenas, but are not criminal in nature.
A DOJ spokesperson declined, however, to comment on whether the demands had been sent.
?The antitrust division is looking into the possibility of anticompetitive practices in the music download industry,? Gina Talamona, a spokesperson for the DOJ, told RedHerring.com on Friday.
The investigation follows on the heels of a probe launched by New York State Attorney General Eliot Spitzer into how the record companies set the prices for music downloads.
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