U.S. Senator, consumer rights group call for an official investigation into Apple Music
- jul
- 22
Senator Al Franken has formally asked both the Department of Justice and the Federal Trade Commission to look into whether Apple's business practices regarding Apple Music are anti-competitive. Senator Franken has expressed concern over Apple's policy of taking a 30% cut of in-app purchase revenue, particularly as it applies to music streaming service. He also voiced concern over some of the restrictions placed on developers as a part of their agreements with Apple.
From Senator Franken's letter:
In the case of music streaming services, Apple's licensing agreements have prevented companies from using their apps to inform users that lower prices are available through their own websites, to advertise the availability of promotional discounts, or to complete a transaction directly with a consumer within their app. These types of restrictions seem to offer no competitive benefit and may actually undermine the competitive process, to the detriment of consumers, who may end up paying substantially more than the current market price point.
In addition to Senator Franken, consumer advocacy group Consumer Watchdog is also calling for an investigation from the DOJ and FTC. The group is accusing Apple of using its market position inappropriately as it enters the music streaming industry.
Along with these formal calls, recent reports suggest that the FTC is already looking into Apple's practices with Apple Music. The commission has reportedly begun issuing subpoenas to music streaming companies as part of its investigation.
Source: Senator Al Franken, Consumer Watchdog
