Out-Law News

Department of Justice to investigate MusicNet and Pressplay


The US Department of Justice (DOJ) has begun anti-trust investigations into on-line music service providers MusicNet and Pressplay. Both rival companies are developing new subscription facilities that are intended to provide users with music on-line without infringing the copyrights of artists and record companies.

European regulators launched a similar investigation into the companies in June, following complaints that their on-line initiatives would push independent music producers out of the market. Since between them the companies are backed by the leading members of the music industry, smaller companies have expressed their concerns that they will not be able to compete in the on-line music market.

PressPlay is supported by Sony Music Entertainment and Universal Music Group, whilst MusicNet is a joint venture between Real Networks, AOL Time Warner, Betelsmann AG and EMI Group. Both companies are expected to launch their on-line music services in the Autumn.

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