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Apple And Three Record Labels Facing Major Violations

Apple And Three Record Labels Facing Major Violations

The streaming wars continue, with Apple recently announcing the launch of their new streaming platform coming June 30th, while the debate between Soundcloud and major labels continue to heat up. Spotfiy is also in the middle of this mess, and it's becoming a giant game. Oh, there's also Tidal, but we all know how well that is going.

The initial introduction to Apple Music seemed strong, but now it appears they could be facing a major roadblock on the legal side of the spectrum. New York's attorney general Eric T. Schneiderman and Connecticut's attorney general George Jepsen both speculate that Apple pressured or colluded with Universal Music Group, Warner Music Group, and Sony to have them pull support from other streaming services.

Read: Soundcloud Introduces New Payment Plans 

Services like Soundcloud and Spotify are considered "freemium," in the sense that their base level of use is free and they are finically supported by advertisements and users that upgrade. This is what sets Apple streaming apart, which will only be available through a paid subscription. It's meant to be a streaming service, social network, and radio station all in one.

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So far Universal Music Group is the only label complying with the operations publicly, while the other two have been quiet on the matter. The letter from their lawyers states that Universal had no agreements with Apple or the other labels that would impede free or ad-supported services.

Read: Soundcloud Strikes Deal With Thousands Of Major Labels 

Jepsen stated that his office was satisfied with Universal's response, but will "Continue to monitor that market to ensure that consumers and competition are protected.” We will keep you updated on the story as it develops. You can watch the video for Apple Music below, to get a feel for the service.

Source: New York Times

(H/T): Dancing Astronaut 

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