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eMusic CEO: unlimited iTunes is anti-trust material

updated 05:45 pm EDT, Thu March 20, 2008

Pakman blasts iTunes idea

Despite a lack of official word from Apple in terms of a "Comes with Music"-style unlimited iTunes download plan, the concept is drawing heavy criticism, especially from eMusic CEO David Pakman. Many in the industry are trying to predict Apple's moves before any official announcement [1|2], and Pakman claims that a potential unlimited plan would rank Apple alongside Microsoft in terms of monopolistic behavior, due to the company's market dominance with the venerable iPod, according to Wired.

"They're basically saying, 'Let's give a piece of every iPod sale to the record labels in exchange for bundling in all the music you can eat with every iPod'" said Pakman. "That's classic Sherman Antitrust Act behavior. It's called tying, and it's where a company with a monopoly position in one market uses that monopoly position unfairly to compete in another."

Pakman draws parallels of the scenario to Microsoft's inclusion of Internet Explorer with Windows, which arguably killed Netscape as a neck-and-neck competitor.

"The troubling thought to many of us is that it's a very logical step on Apple's part," admits Pakman. "But because they're a monopolist, they're going to be held to a different standard."




by MacNN Staff

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Comments

  1. Tim_s

    Joined: Dec 1969

    0

    really?

    What's this guys IQ? Seriously, I'm not joking, how does someone that limited in brain power become a CEO?

    I mean, I'm all about criticizing Microsoft about things, but I at least wait until they actually do it?

  1. jpellino

    Joined: Dec 1969

    0

    un-be-freaking-lievable.

    it's the SAME MARKET for the love of God, is there anyone in the music business who is interested in simply competing or do they all just claim the ones who do it right are unfair?

    Gosh, back when I had eMusic, I got an RCA Lyra (shudder) and an allowance of music with it.

  1. ZinkDifferent

    Joined: Dec 1969

    0

    Whoops...

    ...looks like someone's jonesing for free press...

  1. eldarkus

    Joined: Dec 1969

    0

    Might..

    have more credibility coming from someone who isnt competing with Apple for music sales

    And Apple is not a monopolist by any means

    "a company or group having exclusive control over a commodity or service"

    There are both many other mp3 players and music stores to choose from. Just because Apple makes the most popular one, does not make them a monopolist.

    And.. I saw this on Wiki about the Sherman Act

    "The Sherman Act was not specifically intended to prevent the dominance of an industry by a specific company, despite misconceptions to the contrary. According to Senator George h***, an author of the bill, any company that "got the whole business because nobody could do it as well as he could" would not be in violation of the act."

  1. Super Glitcher

    Joined: Dec 1969

    0

    zinkdifferent -LOL

    SPOT ON BROTHER! SPOT ON....

  1. russellb

    Joined: Dec 1969

    0

    eMusic

    go get a brain ... a monopoly is where you dont have a choice.

    You dont have to buy an Ipod .. you can choose from dozens of other music players.

    You wont have to buy a premium Ipod, you could choose a non premium Ipod without the all you can eat.

    Even if you were forced to buy the premium Ipod (at your choice) you can still buy music from other sources and put any mp3 on your ipod

    eMusic translation .... "s*** we dont like having to compete with itunes"

    Itunes / Ipod have only become popular because it's the peoples choice .... no one forces people to buy Ipods or use itunes and you have plenty of other choices ... it's simple , those other choices are not as good so people dont choose them.

  1. jameshays

    Joined: Dec 1969

    0

    You too, can become a CEO

    This just shows that anybody can be a CEO.

    Can somebody explain to me what anti-trust is? According this the article above, it seems to be the notion that a company utilize and partner with other services to create a whole package much greater than the parts which create it.

    Now, if creating this relationship with the music industries created an environment that blocked or hindered other services, that could be anti-trust. In this case, consumers choose one environment over another. These people confuse anti-trust with consumer-choice. Nothing prevents me from buying music from eMusic except my choice. And, the only thing that would prevent me from using uMusic on an iPod would be eMusic, not Apple.

  1. Foe Hammer

    Joined: Dec 1969

    0

    Sounds like somebody ...

    ... has been munching way too many power pellets in his music maze.

  1. bubuschoeny

    Joined: Dec 1969

    0

    No apple is a monopoly

    They don't open up Itunes to anyone else. The Fist-F#ck consumer's every chance they get. Thye stiffle innovation. The create deals that hurt other companies trying to compete. Apple want to control everything about their platform. You Isheep should grow brains.

  1. MeandmyMac

    Joined: Dec 1969

    0

    What about Coke?

    Coke-A-Cola doesn't open up their recipe to anyone else? They'll lock you up every chance they get it they catch you trying to look at their formula! They are always running promotions to beat out Pepsi. Coke wants to control everything about their formula/recipe. Who here really needs the brains???

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