Apple Streaming Music Service Raises Antitrust Concerns, Consumer Watchdog Says

Consumer Watchdog asked the FTC and Justice Department to investigate whether Apple unfairly dominates the streaming music business, said a CW news release. “Apple’s new streaming music service raises serious antitrust concerns that require the government to put limitations on Apple as it develops its service if consumers are to continue to have access to free streaming music services and so-called ‘freemium’ music,” wrote CW President Jamie Court and Privacy Project Director John Simpson in a letter Wednesday. Apple has credit card information for subscribers and knows its users’ musical preferences, and uses that information to “attempt to rub out free (commercial sponsored) music platforms,” the group said. “Confidential information provided to Consumer Watchdog suggests that Apple is pressing the three remaining music labels to give Apple exclusive rights to artists" -- it has more than 800 million credit cards on file worldwide and can charge those cards following a trial subscription; has inside knowledge of the music preferences of hundreds of millions of consumers and can leverage this information to dominate the subscription music sector regardless of price; and if the music studios don’t comply, Apple will go directly to the artists and cut the music labels out of the business, the letter said. “Apple is utilizing its market power in much the way the company did in setting e-book prices.” Documents showing Apple’s tactics are under seal in an action before the Copyright Royalty Board, under the case citation 14-CRB-0001-WR (2016-2020) (Web IV), the letter said. DOJ and the FTC can issue a subpoena to see the documents, it said. “Given that Apple is both an online platform for music apps, the dominant one in the industry, and now a competitor of streaming music services, Apple is in a position to drive up prices for consumers,” Court and Simpson wrote. DOJ, the FTC and Apple didn't comment.