The internet is all about people power and the four major music labels are about to find their positions tested by that power as online music customers are asking the courts to look into whether those labels have been artifically keeping the price of digital music high. The action, taking place in the US, could well spread to the UK if, as charged, the labels are found guilty of conspiring to keep a wholesales price of US 70 cents. The other added twist is the well publicised attempt by the labels to get Apple, and iTunes, to raise its prices and also introduce flexible pricing points, both of which were rejected by Apple.

Hearings start next month and none of the labels had anything of any substance to say. Lawyers contesting the customers side have stated that digital music should be much cheaper. The overall process of music labels’ pricing and contractual relations with online music sellers is already under investigation in the US.

Should make for an interesting time, should digital music sales remain strong over the coming months.

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