Doj Subpoenas Riaa, Online Music Services

The Department of Justice (DOJ) has sent subpoenas to U.S. music companies, the Recording Industry Assn. of America (RIAA), MusicNet, and Pressplay in its investigation into possible anti-competitive aspects of the yet-to-launch online subscription services (Billboard Bulletin, Aug. 6). The subpoenas seek documents concerning licensing terms, rates, and negotiation conditions for online music services.

The RIAA will cooperate, spokeswoman Amy Weiss says in a statement. "We are confident that, once it has gathered the relevant facts, the [DOJ] will conclude that our actions have been fully compliant with all applicable laws. Indeed, the steps we have taken to facilitate the legitimate online marketplace have been pro-competitive and beneficial to consumers."

The Federal Trade Commission and DOJ, which is handling the probe, interviewed Webcasters and retailers this summer. A DOJ spokeswoman says the agency does not comment on ongoing investigations.

The investigation follows a probe by European regulators in June, after independent music producers complained that MusicNet and Pressplay could potentially exclude them from online distribution deals. The European Commission denies a report that it was prepared to ban MusicNet and Pressplay before their planned launches later this year as "gross speculation."