SEN. FRANKEN: INVESTIGATE APPLE

In a letter sent to the Federal Trade Commission and the Department of Justice yesterday, Sen. Al Franken has asked federal regulators to look into possible antitrust violations in the music streaming market by Apple Music

The complaint centers around two key roles Apple has in music streaming. First, it provides the App Store platform for competing streaming services including Spotify, Pandora, Rhapsody and others, while taking a 30% cut of all in-app purchases. Secondly, and more importantly, it now has its own streaming service.

Competitors who use the App Store for distribution are currently barred from advertising discounts or mentioning other options to get the app, such as downloading directly from a website.

For a $9.99 service like Spotify for example, that 30% Apple Tax escalates the price another $3 a month. Spotify has recently been messaging this disparity to consumers via social media, urging them to sign up through their website instead of the app store to save money.

Franken called for a closer examination of the business practices to see if they are inflating prices to undercut the competition.

"Increased competition in the music-streaming market should mean that consumers will ultimately benefit through more choices of better products and at lower prices,” Franken wrote, “I am concerned, however, that Apple’s position as a dominant platform operator may actually undermine many of the potential consumer benefits of its entry into the market. To protect consumer choice and promote greater transparency of pricing, I ask that you review Apple’s business practices with respect to its competitors in the music streaming market.”

Apple was able to expeditiously ward off dissent from independent labels and their self-appointed champion Taylor Swift when that flared up; perhaps the company will react quickly again to deflect this latest round of discord.