Department of Justice sets its sights on iTunes in new anti-trust investigation

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And it has happened once again. The New York Times published an interesting article this evening which alleges that the U.S. Department of Justice has kicked off another anti-trust investigation that focuses in on Apple. Unlike the other two ongoing investigations which deal with Apple’s lockout of Flash in the iPhone OS and its upcoming iAd service, this time around its Apple’s strangle-hold grip on the digital music marketplace that’s getting all of the attention. Here specifically is what the NYT said triggered the investigation.

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.

So far the Department of Justice has not proceeded past the inquiry stage, but it doesn’t exactly reflect well upon Apple that this is the third time this month the agency has poked its nose in Apple’s affairs.

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48 Comments
  • Duke Nukem

    Add this to the never ending list of rotten apples. Another reason why I will not buy the new iPhone, no matter how “magical” it is (or how magical Steve Jobs says it is).
    I loved iPhone OS but can’t stand all of the controlling and BS that comes with it. I’ve got an N1 and will be getting the EVO in June. I’ve made the switch to Android and don’t plan on looking back.
    Let the downranking ensue.

  • dario

    No, anyone that believes that is an idiot. It is their business practices that matter. A large company can do business just fine without any probes. It was when they act like a bully and get heavy handed that brings attention like this. Don’t act like this is business as usual. It isn’t. Microsoft deserved it back in the day and Apple sure as crap deserves it today. Heck, they make MS look like amateurs. Way to go Steve. You beat your competitor at their own game.

  • marK

    really? Isn’t that the same thing they said about MS and Explorer?

    What about the artists who had their music yanked off of itunes simply because Amazon offered their songs in a day-early deal–a deal which they had no real input on? You don’t see any coercion or anti-competitive action there? Fcn peon…

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