Spitzer issues subpoenas to the world’s leading music companies

Spitzer issues subpoenas to the world’s leading music companies

It is ironical that most music companies who are dealing with Apple iTunes and are demanding the Macintosh maker to increase the prices of songs on the digital store are now being probed for the same. New York state attorney general Eliot Spitzer has issued subpoenas to some of these music industry giants.

Spitzer is probing these companies to discover if they have broken any laws related to the wholesale pricing of digital music downloads. Some of the companies receiving these notices are biggies like Sony BMG, Time Warner Inc’s Warner Music, EMI Group PLC and Vivendi Universal unit Universal Music.

However, the probe is still in its initial stages and nothing is confirmed whether the companies would be fined or punished in some way or the other. A spokesperson working for New York State Attorney General Eliot Spitzer said in a statement: “It is too early to call it an investigation.” The decision on this probe could be as far away as a couple of months.

Most of these companies are dealing with Apple iTunes and other digital music download services. Apple sells the songs on their store at a flat fee of 99 cents each but these companies are adamant on applying a differential pricing. They say that newer songs should be charged for more than older and non-popular songs. Apple on their part are opposing this move claiming that the consumer in the end wants simplicity and would be confused by these kind of price differences.

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