Posted by bigscreen on 03/10/06 12:52

The US Department of Justice is investigating allegations of price
fixing by top music labels on their charges for digital downloading.
Labels have been at loggerheads with Apple over what it charges for
tracks sold through its iTunes online service.

"The antitrust division is looking at the possibility of
anticompetitive practices in the music download industry," a Department
of Justice spokeswoman said. Industry experts said the authorities
would look into claims the big four major MUSIC LABELS WERE COLLUDING
TO FIX WHOLESALE PRICES for online retailers such as Apple.

The four major labels - Universal Music, Sony BMG, Warner Music and EMI
- want Apple to vary the price of songs downloaded via its iTunes
digital music store, which had more than 20 million users last year.

Apple has insisted on selling individual tracks for 99 cents in the
United States.

None of the world's four largest music labels have commented on the
inquiry.

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