FTC ▪ July 29
FTC ▪ July 22
Apple is once again coming under fire for business practices and deals around Apple Music, the subscription music and video streaming service it launched last month. Consumer Watchdog, a prominent consumer advocacy group, issued a letter to the United States Federal Trade Commission and Department of Justice today, asking the government to put restrictions on Apple’s “plans to dominate the subscription music sector” while citing “serious antitrust concerns” based on information it received. expand full story
FTC ▪ July 11
The US antitrust regulators are reportedly looking into Apple’s subscription service rules for the App Store are anticompetitive and illegal under US law, according to Reuters. The main issue of contention is that the standard streaming music price of $9.99 per month is not attainable for Apple Music competitors as App Store rules enforce a 30% cut of all revenues made from within apps.
This means that streaming companies either have to take on significant profit cuts to stay at the $9.99 mark or charge more in the App Store to account for the 30% margin. The argument is that consumers will not want to pay $12.99 (approximately $9.99 with a 30% increase) per month for a streaming music service when they can readily buy Apple Music for $9.99.
FTC ▪ June 17
[Updated with AT&T statement below the fold…]
The Federal Communications Commission announced today that it plans to fine AT&T $100 million for throttling data speeds for customers with unlimited data plans. In its complaint, the FCC said the carrier “deprived consumers of sufficient information to make informed choices about their broadband service” which hurt competition… expand full story
FTC ▪ June 9
We’ve already heard several times that Apple has been facing investigations from both the Department of Justice and Federal Trade Commission over how it negotiated with labels for Apple Music. Now, the New York State’s attorney general has posted a letter from Universal Music Group in which it claims that it is not doing anything illegal to prohibit the access of free music services by the consumer. From the letter:
UMG does not currently have any agreements with Apple Inc. (i) to impede the availability of third-party free or ad-supported music streaming services, or (ii) that limit, restrict, or prevent UMG from licensing its recorded music repertoire to any third- party music streaming service on any terms that UMG may choose. Nor does UMG intend to enter into any such agreements.
Apple has been accused of using its large pull with labels to put other streaming music services like Spotify at a disadvantage. One specific example of this that has been pointed out earlier is Apple forcing labels to reduce the music that it makes available to ad-supported services in an effort to bolster the selection available on Apple Music.
FTC ▪ May 5
Following a report yesterday claiming that Apple was being investigated by the Department of Justice over anti-competitive practices surrounding the launch of its rebranded Beats streaming music service, Bloomberg this evening now corroborates that report. Bloomberg says that the Federal Trade Commission is investigating whether Apple is using its large iTunes store to put rival streaming music services like Spotify at a disadvantage.