US: Spotify asks Congress to look into Apple music

US government antitrust regulators are looking into claims about whether Apple’s treatment of rival streaming music apps is illegal under antitrust law, according to three industry sources.

Apple recently launched a new music streaming service, Apple Music. It also provides the App Store platform for competing streaming services including Jango, Spotify, Rhapsody and others.

Apple takes a 30 percent cut of all in-app purchases for digital goods, such as music streaming subscriptions and games, sold on its platform.

While $9.99 has emerged as the going monthly rate for music subscriptions, including Apple’s, some streaming companies complain that Apple’s cut forces them to either charge more in the App Store than they do on other platforms or erode their profit margins.

The Federal Trade Commission is looking at the issue but has not begun a formal investigation, said the three industry sources, who requested anonymity. The agency has had meetings with multiple concerned parties, one source said. The agency meets with companies routinely, and a formal investigation may not materialize.

Spotify in particular, has hired four outside lobbyist to help with ¨platform neutrality and approached House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and other panel members in May to discuss antitrust issues concerning steaming music and Apple.

Full content: Sentinel Republic

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.