The major music labels are now under investigation by the US Department of Justice in a probe on suspicions of antitrust violations, according to the UK Register this afternoon. The impending launch of the Sony BMG and Universal backed service TotalMusic is the impetus for the investigation. The service is to be a low-cost subscription service similar to the premium music services offered by Yahoo and Napster.
There is a long history for followers of major media ownership of apprehensiveness due to the extreme consolidation with the major labels. Sony, Waner, Universal and EMI supply 80% of the market with music. Their practices in the past have been less than friendly to the consumer. Now that they're looking at profits so low that one innovative band can make more money than an entire label, it stands to reason that while they may embrace technology more readily than in the past, their business practices are almost certain to become more anti-competitive.