Apple’s upcoming subscription music streaming service is facing new scrutiny from federal regulators, the New York Post reports. Sources confirm the Federal Trade Commission and Department of Justice are holding talks with music industry executives to see if Apple’s attempts to undercut streaming music competitors violate any antitrust laws.
European regulators are conducting a similar investigation. Jimmy Iovine, Apple’s executive in charge of the streaming service, has gone on record saying he doesn’t like the way the freemium model employed by services like Spotify devalues music — an argument many record labels have made as well.
While Apple’s attempts to negotiate with record labels for lower music prices than those offered to competitors have apparently failed, regulators are investigating whether Apple has made any exclusive deals with labels that would take content away from competing music services. Apple hasn’t announced deals with any major record labels.
