Government Officials in New York and Connecticut are investigating the deals Apple and major record companies established for Apple Music to determine whether there were any Antitrust violations, reports The New York Times. Eric T. Schneiderman and George Jepsen, attorneys general in the two states, are suspicious Apple tried to convince record labels to abandon free, ad-supported Music services like those offered by Spotify and YouTube.
The attorneys general wanted to k**w whether Apple pressured the Music labels -- or whether the labels conspired with Apple and one a**ther -- to withdraw support for popular "freemium" services offered by companies like Spotify in favor of Apple's paid Music subscriptions.
Spotify offers a freemium ad-supported Music tier that lets listeners access Music at ** cost, provided they also listen to ads. Apple Music does **t include such a free tier, instead requiring all users to pay $9.99 per month for an individual plan or $14.99 per month for a family plan.
According to The New York Times, Universal Music Group is cooperating with the investigation and has told the attorneys general via letter that it has ** agreements with Apple or other record labels that "impede the availability of free or ad-supported Music streaming services" and it has ** intention to enter any such agreements.
In a statement, Connecticut attorney general George Jepsen said he was satisfied with the response he received from UMG. "We will continue to monitor that market to ensure that consumers and competition are protected," he said. Schneiderman's ****** made a similar statement, saying "It?s important to ensure that the market continues to develop free from collusion and other anticompetitive practices."