EU Finds No Evidence of Apple, Music Labels Colluding

The European Commission failed to find evidence of collusion among the major music labels and Apple to quash free music streaming services such as those offered by Spotify, according to four sources with knowledge of the matter.

According Re/Code, Investigators examined whether the labels conspired with one another or with Apple on Apple’s new streaming music service in a way that would hurt rivals. The probe failed to turn up any illegal activity, though the EU will continue to monitor the market, sources said.

Separately, the EU has asked Spotify and other music streaming services for information pertaining to Apple’s mobile App Store, according to people with knowledge of the situation. Regulators are seeking information on the restrictions Apple places on apps offered through the store. The U.S. Federal Trade Commission similarly is exploring whether Apple’s treatment of rival streaming music apps in the App Store violate antitrust laws.

Ahead of Apple Music’s launch on June 30, European regulators investigated whether the iPhone and iPad maker had colluded with the major labels to lock out rivals. The EU sent questionnaires to the major labels — Universal Music Group, Sony Music Entertainment and Warner Music Group — seeking details about their licensing discussions with Apple.

The probe examined whether the music industry executives and Apple were working to stifle free offerings from services like Spotify, which uses its ad-supported service to entice listeners to buy a subscription. Spotify was under pressure by the major labels to move more of its listeners to its paid tier, though the pressure appears to have receded amid the inquiries.