Rdio Has Hit Back At Sony Over Claims Of Price Fixing

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Rdio Has Hit Back At Sony Over Claims Of Price Fixing

Music streaming service Rdio, which was purchased by Pandora late last year, has hit back at Sony Music, citing unfair practice and collusion after the major sued, alleging misrepresentation, false statements, and concealment in the months prior to the streaming company’s bankruptcy.

In April a lawsuit against Rdio was filed by Sony Music, claiming that the streaming service knowingly concealed records of its imminent bankruptcy and purchase by Pandora, keeping Sony from demanding payment of $5.5 million owed in licensing payments.

“The Hollywood Reporter” has reported that Rdio is now having Sony Music investigated over claims that they have been colluding with Universal Music Group.

In a request to the presiding judge, Rdio has stated that they believe Sony and Orchard have been engaged in anticompetitive behaviour to fix and control prices, which has subsequently restrained trade for the licensing, marketing, and use of music by other audio streaming services.

In an attempt to cooperated Sony has offered to produces its licensing agreements with Spotify, Amazon, Apple, Google, and other streaming companies. However, Rdio argues that these documents have been “cherry-picked” and will offer little-to-no evidence of collusion.

Sony has refuted these claims, stating that they are nothing but “speculation and conjecture.” Claiming that if they were to comply with Rdio’s request millions of dollars would be lost as well as months of employees time. The only reason Rdio has made this claim is in an attempt to force Sony Music to drop its legal action, states Sony.

Rdio isn’ the only company to have been sued by Sony Music. In March the record label filed a lawsuit against online radio service Radionomy, accusing the company of copyright infringement and claiming $150,000 per track used from its catalogue.

More on this story as it develops.

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