Justice Department has launched inquiry into digital music pricing, sources say

LOS ANGELES — The Justice Department has started a preliminary inquiry related to the pricing and promotion of digital music by Apple Inc. and Amazon.com Inc., according to sources familiar with the discussions.

All four music labels — EMI Music, Sony Music Entertainment, Universal Music Group and Warner Music Group — were contacted by Justice Department officials several weeks ago, sources said.

Investigators had asked about the labels’
participation in Amazon’s Daily Deal, which gives discounts on albums
and songs a day before the music is released widely in stores and other
music sites. Specifically, Justice Department representatives wanted
details on whether Apple leaned on the labels to discourage them from
participating in Amazon’s program, sources said.

Billboard magazine had reported on the imbroglio between Apple and Amazon on March 4 in an article titled “Apple Agonistes.” The New York Times on Tuesday afternoon first reported on the Justice Department examination.

Sources stressed that the inquiry appeared to be in
the early stages. Neither Amazon nor Apple immediately responded to
e-mails requesting statements. A Justice Department spokeswoman could
not be reached for comment.

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