Blog Post

Music Labels Reject Warning From Japanese Regulator

The Japanese music labels charged with collusion by the Japanese Fair Trade Commission have all (with the exception of Toshiba EMI, which hasn’t responded yet) denied the charge and have indicated they’re not willing to change their business practices. “Their response means the FTC will begin scheduling hearings to review the companies’ case soon.” As has been pointed out, one of the CEO’s has already boasted that the arrangement means less competition for them, and therefore more profits…Whether the FTC has a case was discussed in the post about the charge being laid (and there’s a particularly intelligent comment you should read).

However, I wonder if this is not just a delaying tactic. If by challenging the order the labels get another six months of monopoly on the market it may be worth paying whatever penalty they end up getting. This has been used by plenty of other companies in the past… (thanks to Ringtonia for putting me onto the label’s response)