Download pricing
US Department of Justice investigators have begun to probe major music labels’ download pricing policies, sources close to the world’s four biggest recording companies told Billboard magazine.
The DoJ supsects Warner Music Group, EMI, Sony BMG and Universal Music Group have a secret deal concerning digital music pricing. Investigation centers on the major labels’ use of “most favored nation” clauses in deals with download and subscription retailers. Digital music service operators have complained that such clauses, which dictate that a label can’t receive pricing terms worse than its competition, are a tool for de facto collusion by the record companies. In some cases, the clause allows labels to audit the terms of deals the online retailers have with other record companies to ensure that they are receiving the best pricing terms possible, digital retail sources say. The probe is believed to be looking at whether anti-competitive practices are at play.
source: http://www.billboard.biz
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