@ CEOstevejobs @amazon

Uh oh…it looks like the folks at Apple may have let their dominance in the digital media game go to their head.  The U.S. Justice Department has launched an antitrust investigation into if Apple executives have been getting mafioso using their market share as leverage to bully record companies into not working with the competition, namely Amazon.

Back in March, Billboard reported that in effort to gain a competitive edge Amazon was asking music labels for exclusive rights to select new releases one day before they hit other venues like iTunes.  In return, Amazon would give those tracks top billing in their “MP3 Daily Deal” on its web site.

Since then rumors have surfaced that Apple execs have been shaking down the labels forcing them to refuse exclusive access to Amazon in fear of their marketing on iTunes disappearing all together in retaliation.  With Apple iTunes maintaining such a stranglehold on the market (69%), that’s a game most labels in the current environment can’t afford to play.

“Certainly if the Justice Department is getting involved, it raises the possibility of potential serious problems down the road for Apple,” said Daniel L. Brown, an antitrust lawyer at Sheppard Mullin Richter & Hampton. “Without knowing what acts or practices they are targeting, it’s difficult to say exactly how big a problem this is,” Mr. Brown added. “But it’s probably something Apple is already concerned about.”

With just 8% of the market share, Amazon’s MP3 store is actually receives is in second place behind the behemoth that is iTunes which is the largest seller of online music controlling almost 70% of all music downloads.  WOW!

This isn’t the only investigation by the federal government involving Apple. The Federal Trade Commission is looking into the fairness of their rules for developers who create apps on their iPhones. Apple is now the Tony Soprano of the tech game.   Its so interesting how things have changed over the years.  You might not remember but Apple was always billed as the little guy, the cool little boutique computer company competing with the likes of Microsoft and IBM.  But now the tables have turned and they’re clearly the schoolyard bullies but haven’t yet let go of that innocent boy next door image.  A far cry from their famous “Big Brother” ad huh?

Via: New York Times