antitrust ▪ May 7

spotify

Spotify, which is widely believed to be behind the antitrust allegations that led to both EC and DOJ investigations into Apple, has now added a fresh complaint. The Verge reports Spotify is complaining that the 30% cut Apple takes from in-app Premium subscriptions in the iOS app amounts to an “Apple tax.”

Apple charges a 30 percent fee toward any sales through its App Store, and that includes subscription services. That means if Spotify wants to sell its premium subscription service — which usually costs $9.99 a month — through the App Store, it has to raise the price 30 percent higher to $12.99 to pull in the same revenue, while Apple can still offer Beats at a lower price. Spotify and many others in the music industry believe Apple’s App Store tax gives them an unfair advantage over the competition.

One unnamed music industry source said that Apple taking 30% was “**cking bullsh**” …  expand full story

antitrust ▪ May 4

apple-doj-investigation

Allegations that Apple is engaging in anti-competitive practices in the run-up to the launch of its rebranded Beats streaming music service are now being investigated by the Department of Justice, according to “multiple sources” cited by The Verge.

The claim is that Apple has been attempting to use its influence to persuade music labels to pull out of deals with free, ad-supported services like Spotify and YouTube in order to reduce competition and increase demand for its own paid service. The European Commission launched an investigation into these same allegations last month …

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antitrust ▪ April 2

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Apple’s planned rebranding and relaunch of the Beats streaming music service has not had the easiest of rides. The launch, initially planned for earlier this year, was delayed by the departure of key execs and difficulties integrating Beats and Apple technologies. A planned $5/month price-point had to be abandoned in favor of an attempt at $7.99/month when music labels wouldn’t play ball, and that too now looks increasingly unlikely even though Google Play offered initial All Access Signups for a $7.99 locked in. And any plans to offer artist exclusives as an inducement now face competition from newly-relaunched Tidal.

Just when it seemed things couldn’t get any tougher, London’s Financial Times reports that the European Commission is considering launching an antitrust investigation into the service, even before it launches. The Commission has contacted several music labels to ask what deals have been done with Apple, says the FT.

The commission, which also has contacted Apple’s music-streaming rivals, is said to be concerned that the company will use its size, relationships and influence to persuade labels to abandon free, ad-supported services such as Spotify, which depend on licenses with music companies for their catalogues.

The newspaper implies that the investigation may have been triggered by a formal complaint by an existing streaming music service …  expand full story

antitrust ▪ December 17, 2014

antitrust ▪ December 16, 2014

apple_ipod_classic_160gb_02

Update — Apple’s statement via CNBC: “We thank the jury for their service and we applaud their verdict.”

A jury has decided that Apple is not guilty of violating antitrust laws in the decade-old lawsuit involving the iPod, iTunes Music Store, and digital rights management usage. The jury had to determine if the iTunes updates affecting customers’ iPods were “genuine product improvements” with Apple citing security concerns for implementing the usage of DRM. expand full story

antitrust ▪ December 15, 2014

steve-jobs-video

The class-action lawsuit against Apple over alleged anticompetitive behavior in how the iPod handled songs from third-party much stores is finally in the hands of a jury. Following last week’s final witness testimony, the jury has started deliberations in the decade-old case.

The evidence and testimony in this case have given us quite a bit of insight into the way Apple operated ten years ago with regards to its iPod and iTunes business. Former CEO Steve Jobs took jabs at rival Real Networks in a videotaped deposition (which the media wants the public to see, but Apple doesn’t). We also learned details of Apple’s contracts with record labels.

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