New threat to record labels: the DOJ

A few months ago the big record labels finally seemed to have tamed their biggest Internet foes, from Napster to But a threat potentially greater than California start-ups lurks on the other side of the country.

The U.S. Department of Justice is growing suspicious of the labels' increasing power, and antitrust investigators are beginning to invite start-ups to closed-door discussions in Washington, D.C., to determine whether the labels are violating antitrust laws.

"We weren't surprised," said one Internet music executive who received an invitation to a private meeting with the DOJ. "Whether or not this pattern of behavior we've seen from record labels does or does not constitute antitrust, it's certainly (a concern) to us. I wasn't surprised it was (a concern) to others as well."

News source: ZDnet

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