Senator Al Franken believes Apple may be violating antitrust laws with its Apple Music service and has asked the U.S. Department of Justice and the Federal Trade Commission to look into the company’s practices.
At issue is how Apple Music and competing services are priced. Apple charges $10 per month for Apple Music. Many of Apple Music’s competitors, such as Spotify and Rhapsody, charge this same monthly fee. Apple lets competitors offer their apps and services through the iTunes App Store; however, because Apple takes a 30% cut in app revenue, Spotify and others are forced to raise their prices to $13 per month in order to make up the difference.
Spotify is available for $10 per month to anyone who initiates the service online directly with Spotify, but Spotify is not allowed to advertise that in its iTunes App Store listing. Franken alleges that this results in consumers over-paying for music services. The FTC is already probing Apple’s app store policies, but it has yet to open a formal investigation.
Neither the FTC nor the Justice Department responded publicly to Franken’s request. Separately, a consumer watchdog organization wants the FTC and Justice Department to examine the agreements between Apple and the big music labels.
It alleges Apple has exclusive access to some artists and is trying to eliminate free streaming services. Apple did not comment on the allegations.
