the existential blues

The Future of Digital Music

Observations on The Justice Department Decision to Investigate the Music Industry for Antitrust Violations

Guest Essay by Congressman Chris Cannon (R-UT)

I read this morning's reports of a Justice Department investigation of the recording industry with great interest. Sadly, allegations of anti-competitive activities by the RIAA and its members are not surprising. Just last week, the Federal Trade Commission issued a complaint against two labels -- Vivendi-Universal and Time-Warner -- for price-fixing. And with the European Union undertaking an antitrust evaluation of press-play and MusicNet, the labels are now facing three government investigations of their business practices within nine months of the MAP consent decree.

The keystone of the Music Online Competition Act is a provision that would prevent the labels from providing sweetheart deals to each other, and then using their collective market power to shut out the competition. And this is exactly the type of behavior that has attracted the interest of the Justice Department's Antitrust Division.

It is clear that the music industry needs closer oversight, and that the Copyright Act is in need of reform. I applaud the Justice Department for looking out for small music distributors, and more importantly, the consumers. I also look forward to Congressional hearings in the fall as we take up not just copyright legislation, but antitrust matters as well.

I hope the debate about digital music can be one based on the merits, rather than on bombastic rhetoric that RIAA's leadership seems to prefer. In the official RIAA comment on our music legislation, Hilary Rosen seems to have had a Conservative conversion, arguing that MOCA has too much governmental interference. Hilary's call for deregulation of the music industry has about as much credibility as Saddam Hussein calling for America to be kicked off the UN Human Rights Commission.

I don't support antitrust enforcement for its own sake. I support it where consumers face uncompetitive markets. Six years after the Internet has gone mainstream, consumers are still without any legitimate access to digital music distributed online. It is appropriate for the Antitrust Division to try to find out why.

Reprinted from Congressman Chris Cannon's Official Website and his Press Release available on-line here.

the Wizard Comments....... The WIZARD couldn't have possibly said it better. Representative Cannon is one of Congress' most educated and knowledgeable members concerning Internet Issues. We are grateful for his assistance and strong conservative values in matters of Internet Freedom, Freedom of Speech and Fair Use Doctrine. Keep this bottle in front of you.