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.
