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Class Action Launched Against Music Labels Alleging Price Fixing in Online Market
A high-profile San Diego-based class action law firm has filed an antitrust class action in the Northern District of California against Sony BMG, Sony Corp., Bertelsmann, Time Warner, Warner Music Group and EMI. Eleven plaintiffs are claiming on behalf of anyone who has “paid inflated prices” for music. The claim alleges:
Defendants engaged in a prolonged pattern of concerted activity to prevent and delay online music from becoming a competitive alternative to their near monopoly of the CD market. Ultimately, when online music became inevitable, defendants then conspired to fix and maintain the prices for such product.
The claim alleges that the joint ventures ‘MusicNet’ and ‘pressplay’ formed by the major labels in 2001 “were not serious commercial ventures, but rather attempts to occupy the market with frustrating and ineffectual services in order to head off viable Online Music competitors from forming and gaining popularity after Napster’s demise.” According to the allegations, the major labels permitted more widespread distribution of online music only after the success of Apple’s iPod in 2003.
Online music pricing has also been the subject of investigation by the New York Attorney General and the U.S. Department of Justice.
For additional information, visit:
http://www.redherring.com/Article.aspx?a=16046&hed=Class+Action+Giant+Sues+Labels+#