Major Labels Under Fire for Price Fixing

Major labels have had no problem suing fans who fileshare music and break the laws of the free market. Now it seems that major labels may not have been playing by the rules either. A law suit alleging that in the early stages of digital music services all four majors engaged in conspiratorial practices to fix the price of digital downloads has been reinstated by the U.S. Second Circuit Court of Appeals in New York.  The lawsuit, Starr vs. Sony BMG Music Entertainment, focuses on the major’s early response to the rise of Napster and the formation of competing services Musicnet and Pressplay. The majors are still innocent until proven guilty, but the suit’s reinstatement validates the plaintiff’s allegations as plausible enough to merit a trial.