Editor’s Note: For information on regulating “platform” markets, see the CRE Working Paper, “Understanding Marginal Costs in a Two-Sided Market: Implications for Debit Card Interchange Regulation.”
From: City Pages
Lately, opinions on music-streaming services are a lot like smartphones — everybody’s got one. And on those smartphones, 52 percent of Americans regularly use a music-streaming app of some form. Since Spotify ran with the idea of albums on demand back in 2008, plenty of musicians have played both opponent and benefactor to this new enterprise, and which camp you fall into tends to depend on how many people named Jay Z you’re friends with.
Still, the U.S. Congress has remained markedly disengaged in the debate surrounding one of its largest cultural exports. Granted, Bob Segar and Garth Brooks are both streaming holdouts, so what does John Boehner need Spotify for anyway? This week, however, Minnesota Senator and Capitol Hill boy scout Al Franken penned an open letter to the Department of Justice and the Federal Trade Commission, imploring them to investigate potential antitrust violations within the streaming music market. His senatorial slingshot was aimed at Apple Music in particular.
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