A music trade association has reportedly asked the European Commission to intervene in a dispute between small music labels and Google-owned YouTube, claiming that agreements YouTube forces upon those labels for participation in its new music streaming service are anticompetitive.
YouTube announced last week plans to launch its new music streaming service to rival companies like Spotify. But Impala argues that YouTube is abusing its market strength and could force unfair terms on smaller labels or block those labels’ content from its site.
YouTube, Impala claims, is also planning on using least-favored nation clauses.
While YouTube is not expected to launch the service until later this summer, reports earlier this month emerged that the leading video streaming website plans to pull small labels’ content form its platform unless they agree to the terms.
”This goes far beyond what would be agreed with any other service,” Impala said of the reported contracts.
The Commission did not comment on the matter.
Full content: Reuters
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