The days of music services Pressplay and MusicNet seem an age away now, but those unsuccessful early attempts at digital music are still hanging over the industry. A federal judge has ruled that a group of major labels must face a consolidated class action lawsuit alleging digital music price fixing, based on their deals with those two services. The lawsuit focuses on publicly hidden Most Favored Nation clauses that it claims effectively set wholesale prices at $0.70 per song, as well as the inclusion of DRM. The first class action lawsuit was filed in April 2007 and amended two months later, points out Courthouse News. After being thrown out, an appeal saw a third complaint filed in June 2010, and it is this consolidated class action that will now be pursued.
Major labels facing consolidated class action price-fixing lawsuit
