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Tech giants investigated for 'collusion' over attempt to stop free music streaming

The technology giant is being probed for violations in their negotiations with music labels.

Apple plan to rival other streaming platforms including Spotify and Jay Z's Tidal

According to reports, Apple's new streaming service, Apple Music, is being investigated in two US states to determine if they pressured or conspired with major labels to withdraw from 'freemium' streaming platforms, such as the service offered by rival company Spotify.

The investigations are currently ongoing in New York and Connecticut, where each states' attorney general is seeking to ascertain whether legal violations occurred against the current code of conduct promoting fair competition amongst businesses.

Matt Mittenthal, a spokesman for the attorney general of New York, said: "It's important to ensure that the market continues to develop free from collusion and other anticompetitive practices."

Universal Music Group confirmed on Tuesday that it is fully cooperating with the investigation, in a letter to Schneiderman's office, from their legal representatives. The label stated that it has no agreement that could restrict the availability of "freemium" services.

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Apple announced the Apple Music service at its developers’ conference in San Francisco on Monday (June 8). Its features include on-demand streaming, 24/7 radio station Beats 1, and social networking that allows artists to connect with their fans.

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