Apple is currently scrutinized by the Department of Justice and the Federal Trade Commission since it was reported that the tech giant is putting pressure on major music labels to end free tiers from streaming services by not renewing its licenses to do so.
The move, according to The Verge, is particularly targeting Spotify which currently leads the streaming service industry free tier service available on both desktop and mobile platforms.
Officials from the DOJ and the FTC have already interviewed several bigwigs in the music label industry. There were reports that Apple is willing to pay the music licensing fee of Youtube to Universal Music Group (UMG). In return, Apple wants UMG must stop playing its music on YouTube.
Apple's move is done in preparation for the relaunch of its own Beats Music streaming service aimed to launch this summer.
Spotify alone claims to have 60 million users, and 15 million of them are paid users. If its free tier was cut off, that it will translate to around 45 million new users for Apple's Beats Music.
Spotify said that it was able to grab the top spot of the music streaming industry due to its free tier platform. Its application allows users to listen to streaming music from playlists or catalogues for free on shuffle mode. If the user wants to download a particular song or listen to it without interruptions, he then has to pay for the music.
According to Spotify, the streaming music platform also aims to "compete with piracy and encourage to listen to music legally."
The company also said it has issues with Apple. A separate report from The Verge said sales through the App Store, including subscription services, is charge with a 30% fee.
Many in the music industry sees this practice an "unfair advantage of the competition" for them since Apple can offer its music service at a lower price through its Beats Music.
Apple bought Beats Music and Beats Electronics in May last year for $3 billion. It was also reported that the new Beats Music music service will be integrated in iTunes. An app will also be made available to iOS, Apple TV, and Android.
Last month, The European Trade Commission also launched an investigation against Apple and other premium music streaming services. Apparently, the New York Post reported, the same issue of killing free tier is being looked into and Apple is among the top American firms being questioned.
