European regulators have reportedly called out for details concerning Apple’s dealings with a number of record labels, ahead of Cupertino’s music streaming service launch, to ensure the dealing does not harm other free music streaming services in any manner.
According to the Financial Times report, the European regulators have sent questionnaires to several streaming services and music labels to ask them about their arrangements with Apple, as Cupertino plans to relaunch its Beats Music streaming service this summer.
The Commission, through its enquiry into Apple’s dealing with music labels, wants to ensure that the iPhone maker does not use its size, influence and relationships to persuade music labels to abandon rivals such as Spotify, which rely on licensing with music companies to grow subscriptions.
It is not that information gathering would necessarily lead to a formal antitrust investigation. However, if the commission finds any wrongdoing in the process, it may call for changes in the business practices and might even impose hefty fines.
Apple’s upcoming music streaming service is expected to offer unlimited music streaming for a subscription fee of around $10 per month. The new service, unlike rival Spotify, will not go for a free, ad-supported tier to attract customers.
Labels are asked to respond to the regulator’s questionnaire within the next couple of weeks.
