Apple’s efforts to set up deals with record labels as it prepares to launch its new music streaming service, a rebranded version of Beats Music, is under investigation by the Federal Trade Commission, reported Bloomberg, making FTC the 3rd government agency to peek into the new music service after the U. S. Department of Justice and European Commission.
A Bloomberg report yesterday claims that the Department of Justice was investigating Apple on the grounds of anti-competitive practices with regards to the launching of its rebranded Beats music service streaming. The news provider says that the Apple is being investigated on the accusation that they are using its large iTunes mart to put rival streaming music services such as Spotify at a distinct disadvantage.
The Cupertino corporation has also reportedly offered to pay YouTube’s licensing
fee to Universal Music Group if the music site will stop allowing its music to be viewed on
their website, which is a prevalent music video destination for today.
The FTC will engage a dialogue with multiple record labels about Apple’s practices.
However, executives of the music industry told Bloomberg that Apple has made no such
Likely, the DOJ will interview high-ranking music executives regarding the issue of Apple’s
practices. While the European Commission is doing the same, troubled that
Apple will make use of its size to influence record labels to stop supporting freemium music
Apple’s very own music streaming service will launch at the end of June, but unlike other
streaming services, it will not free and will instead cost $7.99 monthly, and will be
integrating the iTunes for Mac and the music app for iPhone, iPad and iPod touch. There will
also be apps for Apple TV and Android.
Last month, the company marketed iOS 8.4 beta to developers with a redesigned Music
apps that features a new MiniPlayer, redesigned look for “Now Playing”.