US Court Brings Back Price Fixing Lawsuit Against Major Record Labels

[p2p rules]

For many years, we've wondered why the major labels haven't gotten in trouble for what appears to be clear price fixing -- having all of the major labels band together to both demand identical wholesale pricing and attempt to dictate retail pricing by partners as well. There have been various investigations by both local and federal officials, along with a few lawsuits -- but nothing has really gone very far. One lawsuit was tossed out by the district court back in 2008, but in a surprising move, the 2nd circuit appeals court has revived the lawsuit, claiming that the evidence is "sufficient to plausibly suggest" price fixing by the major labels with regards to digital music. So now it goes back to the lower court. I still doubt this will really have much of an impact, but it's nice to see some recognition of what's seemed pretty obvious for quite some time.

techdirt

[p2p rules]

The major record labels hotly deny they’re the lying members of a venal price-fixing cartel.
They even deny they’re part of a cartel.
Rather, they say, they’re just simple companies trying to make an honest living while their wicked customers get up every morning determined to rob them blind.
But once again they’re in the public eye for price fixing.

Not guilty

Five years ago 43 attorneys general went after the major labels for price fixing.
The record companies “admitted no wrong-doing” but nonetheless were ordered to supply 3,500,000 music lovers with cash payouts.
And as another part of their settlement for not having done anything wrong, the (not)guilty parties were also to supply public schools and libraries with free CDs .

p2net