“A federal appeals court revived an antitrust lawsuit Wednesday that accuses major record labels controlling 80 percent of U.S. digital music sales of scheming together to charge high prices,” Larry Neumeister reports for The Associated Press.
“The 2nd U.S. Circuit Court of Appeals in Manhattan said the lawsuit can proceed before a judge in Manhattan because enough facts, as described by the plaintiffs, support the claims,” Neumeister reports.
“The lawsuit brought by music purchasers had been tossed out by a lower court judge in October 2008. It accused major record labels of conspiring to fix the prices and terms under which music would be sold over the Internet,” Neumeister reports.
“The New York legal action combined 28 lawsuits brought across the country from December 2005 through July 2006,” Neumeister reports. “The combined lawsuit was filed in Manhattan in April 2007.”
Neumeister reports, “Defendants include the four major recording companies: Universal Music Group, Warner Music Group Corp., EMI Music North America, and Sony BMG Music Entertainment, a joint venture of Sony Corp. and Bertelsmann AG.”
Neumeister reports, “The lawsuits accused record companies of conspiring to charge at least 70 cents a song on the Internet, even though their costs were much lower than in record stores.”
Full article here.