Tech giant accused of trying to force labels to stop Spotify, YouTube licenses

The music streaming game is getting much more serious as it gradually becomes a bigger revenue source for artists and labels.

Apple has been looking to shake things up, with the relaunch of Beats Music in the offing, and some of the tactics it has employed are being investigated by the Department of Justice and the Federal Trade Commission.

According to The Verge, “Apple has been pushing major music labels to force streaming services like Spotify to abandon their free tiers, which will dramatically reduce the competition of Apple’s upcoming offering.”

Reports also say that Apple is using its status in the electronics and music world to try and influence labels not to renew Spotify’s license through its free tier. Spotify has 60million users, 15 million of which pay a monthly fee to use the service. If the free option were to go, it could result in a lot of Spotify subscribers jumping ship and signing up with Beats Music, which is expected to feature excusive music, instead.

Sources also say that Apple has agreed to pay Universal Music Group the licensing fee for YouTube’s music if the label stopped allowing YouTube to stream its songs.

Officials from the Department of Justice and the Federal Trade Commission have already started investigations into the claims.