Mar 3, 2006, 17:58 GMT
New York - The Justice Department is investigating the four major US record companies on suspicion that they colluded to fix prices for online music, US newspapers reported Friday.
The investigation represents a major headache for the companies - Universal Music Group; Sony BMG Music Entertainment; the Warner Music Group; and the EMI Group - which have been struggling to provide consumers with compelling alternatives to the illegal file-sharing sites.
The probe centers on suspicion that the music companies collaborated to set the prices they charge to online music sites like Apple's iTunes, or Napster, The New York Times reported.
Reports said that the Justice Department has already issued subpoenas to the companies involved. The investigation is thought to mirror a separate probe launched by New York State Attorney General Eliot Spitzer, who in January opened a wide-reaching investigation of how the companies set prices for digital music.
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