2nd Circuit Reinstates Antitrust Claim Against Online Music Providers

“The 2nd U.S. Circuit Court of Appeals on Wednesday said the
pleadings of music purchasers were sufficient for plaintiffs to
pursue their Sherman Act claim against companies who control more
than 80 percent of music sold as digital files.

“The decision in Starr v. Sony BMG Music Entertainment,
08-5637-cv, was made by Judges Jon O. Newman, John M. Walker Jr.
and Robert N. Katzmann. Katzmann wrote the opinion.

“The amended complaint before Southern District of New York
Judge Loretta Preska, who had received 28 actions from the Judicial
Panel on Multidistrict Litigation, charged the defendants “restrain
the availability and distribution of Internet Music, fix and
maintain at artificially high and non-competitive levels the prices
at which they sold Internet Music and impose unreasonably
restrictive terms in the purchase and use of Internet Music.”

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