FTC Ends Probe Into Music Retailing

Without taking action, the Federal Trade Commission has closed the book on a three-year investigation into alleged unfair distribution practices by the world’s six largest music conglomerates. The probe had focused on allegations that Time Warner, Sony, PolyGram, Bertelsmann, MCA and Thorn-EMI had threatened to withhold product and promotional allowances from retailers who sold CDs at prices below suggested levels. Each of the six firms received a brief letter last week from the FTC explaining that “no further action is warranted by the commission at this time.”