Teken
No favorite files added yet
(Oct 24, 2005 - 8:38 PM)
This seems a pretty clear violation of antitrust law. It's called overt collusion, and it happens when parties get together and agree to adjusting prices according to NON-MARKET conditions.
This is also plain and simple extortion by the record labels. The article clearly states that Yahoo is responding to the labels, not market conditions. $4.99 was perfectly profitable for Yahoo, but the labels pressured Yahoo to charge more.
But don't worry, this tactic will backfire on the labels by creating incentive to "find ways" to get their music "cheaper". If you know what I mean.