Yahoo/Reuters: States Accuse Record Labels of Price FixingAug 08, 2000, 23:08 (7 Talkback[s])
(Other stories by Derek Caney)
[ Thanks to tld3227 for this link. ]
"Twenty-eight states filed suit against the world's five largest record labels on Tuesday, accusing them of fixing prices of compact discs and demanding ``hundreds of millions of dollars'' in damages."
"The suit, filed in U.S. District Court for the Southern District of New York, centers on a policy called "minimum advertised pricing" (MAP), under which the labels subsidized advertising for retailers that agreed not to sell CD's below a minimum price determined by the labels."
"New York State Attorney General Eliot Spitzer said in a statement, "This illegal action...has not been music to the ears of the public. Because of these conspiracies, tens of millions of consumers paid inflated prices to buy CD's..."
"The suit alleges that the MAP policy increased CD prices in violation of state and federal antitrust law, kept CD prices artificially high, and penalized retailers who did not participate."
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