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Apple may be subject of probe

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Published: May 27, 2010 at 2:19 PM
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CUPERTINO, Calif., May 27 (UPI) -- The U.S. Department of Justice is in the preliminary stages of an investigation of Apple for antitrust issues, sources told CNET.

It is unclear whether a formal investigation will develop, but sources said DOJ officials have interviewed music executive from four major companies to see if Apple's dominance in digital music sales includes the company unfairly trying to squelch competition, CNET reported Thursday.

Through iTunes, Apple now controls 70 percent of the digital song market. In addition, Apple sold 28 percent of all music sold in the first quarter in the United States, up from 19 percent two years ago.

An antitrust investigation is likely to include questions of Apple's response to Amazon.com's "MP3 Daily Deal," a promotion of individual songs that are put on sale the day of their release.

In April, Billboard magazine published a story that said Apple told music labels it would refuse to run promotions on any music included in the MP3 Daily Deal.

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