Apple Music to face scrutiny by US state investigators
AGs in New York, Connecticut open anti-trust inquiries into Cupertino’s new streaming service
State prosecutors in New York and Connecticut have opened anti-trust investigations into Apple's recently announced Apple Music streaming service, online media reported.
Attorneys general in both US states are reportedly concentrating their inquiries on the Cupertino company's negotiations with music labels. They are particularly interested in whether companies were pressured into aligning with Apple or if they colluded with the iPhone maker to the detriment of consumers.
Apple unveiled its $9.99-a-month service on Monday at its annual Worldwide Developer Conference, amid a slowdown in the music downloads segment. Consumers increasingly favour streaming, and businesses such as Spotify have previously capitalised on this while Apple persisted with its downloading model. As it enters the streaming arena, analysts believe Apple's brand clout will dramatically alter the industry.
"To preserve [the] benefits [to consumers of online music streaming services], it's important to ensure that the market continues to develop free from collusion and other anticompetitive practices," said Matt Mittenthal, a spokesman for New York attorney-general, Eric Schneiderman.