U.S. Government To Major Labels: Watch Your Backs

As you may have heard, two of the four major labels (Universal Music Group and Sony BMG) are very stoked about the all-you-can-eat musical buffet they’ve dubbed Total Music, which would bundle a $5-a-month charge into cell phones and portable music devices in exchange for letting users of those devices listen to all the music they want to–provided it’s distributed by those entities involved in the deal, of course. Sony and Universal are trying to get EMI and Warner Music Group involved in the effort as well, and that attempt at “cooperation” is apparently setting off alarm bells in the halls of the Department of Justice, who are concerned that Total Music may in fact be a Total Violation Of Antitrust Laws.

Though it cannot be confirmed at this stage, it seems likely that the DoJ is considering launching an investigation into potential anti-competitive practices. This is the second time that the two majors have come under the scrutiny of the US regulators. Back in 2001 anti-trust investigations were launched into the two majors’ online music subscription joint venture Pressplay which ultimately morphed into Napster…

Though the focus of the DoJ is on Universal and SonyBMG as the prime movers behind Total Music, the Department is believed to have requested information from all four majors in the US. Neither Universal nor SonyBMG would confirm or deny the notices.

No doubt those “anticompetitive practices” would also include just whether or not independent labels–and music that’s completely independently released–would be allowed to share in Total Music’s spoils, or whether they’d be completely locked out of devices that are compatible with the software and participating ISPs. And there are other concerns as well–what devices and computers this service would be compatible with, how Total Music will gauge royalty payments for songwriters and performers (Will each play trigger a royalty payment? Won’t that set off alarms in the “privacy at all costs” crowd, even though a bunch of them are seemingly OK with services like Last.fm tracking their iTunes history?), whether or not this idea will actually be technically viable instead of just the result of a late-night self-pity session held by major-label execs in some cigar-smoke-filled back room somwehere. Well, I guess that last one isn’t technically one of the antitrust-related issues, but it still hangs over the whole enterprise.

Report: DoJ Served Major Labels over ‘Total Music’ Initiative [Listening Post]