Apple May Be Violating Antitrust Laws, FTC Explores Claims

Apple (AAPL) recently launched its much awaited music streaming service Apple Music, but is now allegedly being looked into by U.S. antitrust regulators. Claims have surfaced that Apple's treatment of rival music streaming apps may violate antitrust laws. Apple provides an App store platform for competing services like Spotify, Deezer and Jango but takes a 30 percent cut of all in app purchases. Streaming companies are now complaining that Apple's cut will either erode their profit margin or push them to charge above the industry average of $9.99 for their subscription services. Users do have the option of signing up to competitor music streaming services via their websites, but many companies have claimed that customers don't realize they have this option. Apple does not allow any advertising within its App that companies are available on other platforms and also forbids any link to external websites.