Sony BMG, Universal questioned about venture talks: source

Thu Feb 7, 2008 7:58pm EST
 
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LOS ANGELES (Reuters) - The U.S. Department of Justice has requested information from Sony BMG and Universal Music Group about their talks to launch an online music subscription service, said a record company executive on Thursday.

The person, who wished to remain unnamed, said both record companies had received letters from the Justice Department asking questions about their plans for a site to be called Total Music, which would help the labels reduce the leverage that Apple Inc (AAPL.O) wields in the digital music market with its popular iTunes service.

A spokesman for Sony BMG, a joint venture between Sony Corp (6758.T) and Bertelsmann AG (BTGGg.F), was unavailable to comment. While Universal, owned by French media giant Vivendi(VIV.PA), declined comment.

(Reporting by Sue Zeidler; editing by Carol Bishopric)

 
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