Wednesday, May 26, 2010

iTunes under fire by U.S. Department of Justice

The New York Times has published an article stating that the U.S. Department of Justice has kicked-off another anti-trust investigation on Apple with iTunes being the culprit this time because of its strangle-hold grip in the digital music marketplace.

In March, Billboard magazine reported that Amazon.com was asking music labels to give it the exclusive right to sell certain soon-to-be-released songs for one day before the songs go on sale more widely. In exchange, Amazon promised to include those songs in a promotion on Amazon’s Web site called “MP3 Daily Deal.”

Representatives from Apple’s music service, iTunes, were asking the labels not to take part in Amazon’s promotion, and Apple punished those that did by later withdrawing marketing support for those songs on iTunes, the magazine reported.

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