FTC reportedly probing Apple music services
The Federal Trade Commission is looking into if Apple might be violating antitrust law because of the way it treats rival music streaming services, according to a news report.
Services like Spotify and Rhapsody sell apps in the company’s store. But Apple takes 30 percent of sales made inside the apps, like the premium subscriptions that underpin the companies’ business models.
{mosads}Apple launched its own streaming service — Apple Music — last month.
Reuters reported last week that the agency was still in the preliminary stages of examining the issue and that it’s possible no investigation will come out of the discussions.
“FTC investigations are non-public and we do not comment on an investigation or the existence of an investigation,” said an FTC spokesperson in an email.
Streaming services that compete with Apple Music have been raising concerns about the Cupertino, Calif. company’s effect on the market.
Spotify charges more per month for users who sign up for its premium service inside the app, rather than on the company’s website. The service has emailed users to tell them that they could save three dollars by switching their subscription.
Politico also reported on Sunday that Spotify has been quietly raising concerns on Capitol Hill about Apple’s effect on competition.
Streaming music has become a major business in recent years. It’s also raised thorny questions for artists, many of whom say they are not fairly compensated when their songs are played on the services.
Apple Music has been one target of that criticism. The service changed course and decided to pay artists for music played during a three-month free trial period after pop star Taylor Swift blasted the company for its policy.
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