Slyck.com
 
Slyck Chatbox - And More

DOJ Expands Price Fixing Probe

Discuss Slyck's latest news
Forum rules
PLEASE READ BEFORE POSTING: Slyck Forum Rules

DOJ Expands Price Fixing Probe

Postby SlyckTom » Fri Mar 03, 2006 4:35 pm

If you think the news has been flat out terrible for P2P and file-sharing for the last two weeks; rest assured there’s enough bad news to go around. Reuters is reporting the United States Department of Justice has subpoenaed all four major music labels – Sony BMG, Vivendi Universal, EMI and Warner Music.

The DOJ’s reported investigation is an expansion of New York State Attorney General Eliot Spitzer’s current inquiry. At question is whether the four major labels have conspired to set music download prices at 99 cents. If evidence exists the four worked together to fix prices, the State of New York could bring antitrust lawsuits against the companies.

Currently, no one from any of the music companies or the Department of Justice is offering comment. However Reuters has reported that sources close to the investigation stated that Sony-BMG has already received their subpoena. In addition to the DOJ remaining quiet on the issue, no press release has currently been issued.

The widespread implications beyond the state of New York could justify the DOJ’s role in this new round of subpoenas.

Perhaps the most immediate impact of this expanded investigation is the future price of authorized downloads. The major labels and Apple Computers were scheduled to renegotiate the current price of music tracks this year. One of the most pressing contentions is the music labels desire to implement variable pricing, while Apple continues to be adamantly opposed. The major labels might have been able to wiggle their way into variable pricing with only Spitzer on their case, however this appear less likely with the DOJ now involved.
Follow us on Twitter @SlyckDotCom
Join our Facebook Fan page
SlyckTom
 
Posts: 5713
Joined: Fri Jul 26, 2002 7:22 pm
Location: New York City

Postby Dormant707 » Fri Mar 03, 2006 4:47 pm

Nice article Tom. :D

Perhaps the scope of the investigation should be broadened to price fixing on CDs and DVDs. There is very little price difference on CDs, although admittedly you can get DVD movies at cut rate prices if you wait long enough.

Let us just hope that it does not turn out like the M$ investigation where M$ were given the proverbial slap on the wrist.
Dormant707
 
Posts: 5067
Joined: Fri Jul 15, 2005 5:03 pm

Postby Allied » Fri Mar 03, 2006 4:58 pm

His judgment cometh and right soon.
:D
User avatar
Allied
Mostly Harmless
 
Posts: 2170
Joined: Sat Aug 14, 2004 11:23 pm
Location: Behind You Shoe Size: 11.008 BitTorrent: µTorrent Nationality: Canuckian Newsgroups: GrabIt

Postby quosego » Fri Mar 03, 2006 6:10 pm

Why do people take the MPAA and RIAA seriously if they can't even comply to the law themselves.
quosego
 
Posts: 47
Joined: Sat Oct 08, 2005 4:56 am

Postby Christopher » Fri Mar 03, 2006 6:25 pm

quosego wrote:Why do people take the MPAA and RIAA seriously if they can't even comply to the law themselves.


It isn't the MPAA and RIAA, it's their member companies that aren't following the rules of the law.
For some reason, businesses like Google and Microsoft think that just because they are big businesses, they don't have to follow the same rules as everyone else.
It's getting tiresome, and price-fixing is the main reason why a new XBox360 game is almost 60 dollars, when it really should be 30 or less.
I am not as stupid or naive as people would like to believe I am.
Christopher
 
Posts: 829
Joined: Sun Mar 27, 2005 9:43 am

Postby abou105 » Fri Mar 03, 2006 9:10 pm

Christopher wrote:
quosego wrote:Why do people take the MPAA and RIAA seriously if they can't even comply to the law themselves.


It isn't the MPAA and RIAA, it's their member companies that aren't following the rules of the law.
For some reason, businesses like Google and Microsoft think that just because they are big businesses, they don't have to follow the same rules as everyone else.
It's getting tiresome, and price-fixing is the main reason why a new XBox360 game is almost 60 dollars, when it really should be 30 or less.


Cds are too pricey and the music industry blames it on piracy while file sharers blame priacy on high prices ! irony

But in regaurd to xbox 360 games they are pricey i admit but they are far more expensive to make and the profit margin has not been altered emencly althogugh the games shoudl be cheaper it would not b dramaticaly!
Information is so valuable in todays society, its understandable people want to lock it up, but the internet is about freedom of information, lets not take that away.
User avatar
abou105
 
Posts: 1468
Joined: Sun Jun 15, 2003 4:00 pm
Location: a place in my head

Postby Wham » Fri Mar 03, 2006 10:26 pm

I've said it before and I'll say it again, the entire entertainment industry plays by different rules than any other business. They get away with and have gotten away with practices that would bring a normal business to their knees with fines and possibly prison terms for their executives. Why do they get away with it? Well, I believe it's because those that represent them, the icons, the greats, Great Singers, Great Actors, Great Actrises, Great Bands have kept everyone at arms length. Just because the greats represent them, doesn't mean the greats are part of the corrupt organizations themselves. All that it means is nobody is willing to get the bad publicity by going after the execs who work behind the scenes. It doesn't take an Einstein to figure out that the prices have been fixed, they have been doing if for decades. Well, I think times are changing and Americans, at least, have got a wake up call. We shall see what happens.
Wham
 
Posts: 1193
Joined: Sat Mar 27, 2004 1:28 am

Postby obiwan » Sat Mar 04, 2006 3:30 am

[quote="Christopher why a new XBox360is almost 60 dollars, when it really should be 30 or less.[/quote]

You are lucky, in Europe we pay 200 Euros, sa please dont complain.
User avatar
obiwan
 
Posts: 43
Joined: Mon Jan 17, 2005 5:26 pm

Postby voodoohippie » Sat Mar 04, 2006 3:53 am

I'm Damn Glad this is happening. Its about time that the justice system sees just what is really going on.

The reason that the RIAA won't work with say Kazaa is because they want to price fix. This is why Napster was killed as we knew it.

If they had the AEM (Ads Enforcement Management) system I described then all would be fair. The only reason that this won't come to pass till the RIAA and the labels get their ass's in big trouble is that they want to have a scape goat and the p2p networks are just that for them.

Son there will be FREE and legal files you'll be able to Download.

Just to state again I do like iMesh there are alot of good whole albums you can Download for $7/Mo if you were a beta tester when the pay service first came out. Too bad for everyone else.
Check out The Legacy Album Rock http://thelegacy.shorturl.com for the best Album Rock, Classic Rock, Progressive Rock More than "Classic Hits"

Start an Internet Radio Station Legally and even stream Audio Ads.
http://startinternetradio.tk
voodoohippie
 
Posts: 458
Joined: Sat Nov 08, 2003 1:52 am

Postby Red_Blue » Sat Mar 04, 2006 6:33 am

If this price fixing cartel suit succeeds, it might be used as evidence in P2P litigation to support lower damage awards in countries where these damage or "compensation" awards are even partially based on list retail prices.

If the copyright mafia claims that they have lost x amount in sales due to P2P based on their own prices, they would have a lot to explain to the judge how it's fair to use those numbers when they are based on illegal price fixing... :P
User avatar
Red_Blue
 
Posts: 610
Joined: Sun Apr 17, 2005 9:35 pm

Postby Ratt » Sat Mar 04, 2006 7:19 am

Even if the suit doesn't succeed, it is prompting the EU to look into the same issue. The European Commission is already investigating the cost of iTunes tracks in Europe, anyway.

I have a lot more confidence in the EU's anti-trust legislators than America's: the latter let Microsoft off the hook with a tiny slap on the wrist years ago, while the former are still doggedly pursuing the Big M (for Monopoly).
User avatar
Ratt
 
Posts: 951
Joined: Sun Mar 28, 2004 1:50 pm

Postby Andu » Sat Mar 04, 2006 3:25 pm

I am not certain what the DOJ will end up doing. They might have learned a lesson from the investigation of the EU commission into the Microsoft issue.

In any case if the EU will also look into this issue we might see something going on. At least they have proven once that they are willing to set someone straight. But we will see what will happen.

If they really do get this going I have some other markets they could look into regarding price fixing. One would be petrol prices and another one would be energy prices.
User avatar
Andu
 
Posts: 875
Joined: Mon Jul 04, 2005 1:12 pm

Re: DOJ Expands Price Fixing Probe

Postby TV-Slut » Sat Mar 04, 2006 6:52 pm

SlyckTom wrote:The major labels might have been able to wiggle their way into variable pricing with only Spitzer on their case, however this appear less likely with the DOJ now involved.


I don't think it's at all as positive as you think it is Tom. When the current price is fixed at 99cents per download, that is more price fixing than variable pricing that the entertainment industry wants. It's highly possible that Apple will be forced to implement variable pricing rather than stick with the 99cent pricing model. Freezing the price at one amount for all downloads is the exact definition of price fixing. This investigation by the DoJ may not at all end with an ideal resolution for the public.
User avatar
TV-Slut
 
Posts: 138
Joined: Sun May 15, 2005 9:47 am

Postby freakinvibe » Mon Mar 06, 2006 2:21 pm

No, TV-Slut, that's not the meaning of price fixing. Price fixing means that in every shop all over the country the same thing from different vendors costs the same.

In every shop you go, you would get a blank DVD-R for 2$, no matter what brand. All the different vendors like Sony, Memorex etc. would fix the price at 2$, although they could sell for 1$ they try to keep the prices high ==> no competition.

If iTunes is selling all their tracks for 99 cents this is not a problem, if other shops have the freedom to sell for lower, or vary prices.
See:

http://en.wikipedia.org/wiki/Price_fixing

Regards, Pascal
User avatar
freakinvibe
 
Posts: 47
Joined: Thu Nov 03, 2005 6:42 am

Postby morphineinduced » Mon Mar 06, 2006 2:42 pm

I would think it was apparently obvious that the big music industry leaders run this like a monopoly ...... I dont think it took a brain scientiest to figure that one out , so I guess its apparently obvious that the people that run the government have there head up there ass or are just in cahoots with the RIAA
User avatar
morphineinduced
 
Posts: 15
Joined: Sat Feb 25, 2006 10:24 am
Location: i live in the pentagon

Postby Dormant707 » Mon Mar 06, 2006 2:52 pm

4) Avatars:

a) Avatars shall not be larger than 100x100 pixels. Although 80x80 is preferred, we will tolerate up to this size.
b) Avatars shall not have any pornographic images or foul/offensive language.
c) Avatars shall not exceed a data size of 200 kilobytes.

The moderation/administration team will take the liberty of deleting your avatar and informing you via private message if your avatar does not comply with this rule.


Please resize your ava before the Mods have to do it. It is stuffing up the page! :wink:
Dormant707
 
Posts: 5067
Joined: Fri Jul 15, 2005 5:03 pm

$$$ will win again

Postby squirm » Mon Mar 06, 2006 3:13 pm

I'll bet nothing comes out of this investigatino either. It's not that there is no wrong doing by the labels. It's just that it will be another case where the labels line the pockets of the higher ups to cease another investigation against them.
squirm
 
Posts: 59
Joined: Tue Feb 24, 2004 3:08 pm

Postby Pr1M@t3 » Wed Mar 15, 2006 6:32 pm

obiwan wrote:[quote="Christopher why a new XBox360is almost 60 dollars, when it really should be 30 or less.


You are lucky, in Europe we pay 200 Euros, sa please dont complain.[/quote]

DAMNNNNNNNNNNNNNNNNNNNNNnn that's a lotsa lap dances. Who can afford to play XBox360?
Pr1M@t3
 
Posts: 9
Joined: Thu Mar 02, 2006 12:27 am


Return to Slyck News

Who is online

Users browsing this forum: No registered users and 2 guests

© 2001-2008 Slyck.com