Points of Contention Against the RIAA.
The following defines the logic and sentiments of those who believe that the RIAA operates in a monopolistic and abusive manner against artists, consumers, and competitors.
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Contention.
The RIAA currently acts as a monopolistic enterprise by definition of the Sherman Antitrust Act.
The RIAA represents 85-90% of all music currently produced in the United States including the countries five largest record labels: Sony (Japan), BMG (Germany), EMI (UK), Vivendi Universal (France) and AOL/Warner (USA). These "Big Five" account for 90% of the RIAA's annual revenue. It is the interests of these five that are promoted above all. Using this unprecedented clout in size and money the RIAA has taken numerous actions to defraud artists, overcharge consumers, and eliminate competition unwilling to follow their "industry standards." .
Article I. The RIAA has Exercised Vertical and Horizontal Restraint of Trade on the Industry to Inflate CD Prices.
In an August 2000 lawsuit, 28 states plus the commonwealths of the Northern Mariana's and Puerto Rico accused that the Big Five "colluded with the major music retail chains to artificially maintain the price of compact discs." The FTC had similar finding that carried no penalties in response to the states claims. "The Commission has unanimously found reason to believe that the arrangements entered into by the five largest distributors of prerecorded music violate the antitrust laws in two respects. First, when considered together, the arrangements constitute practices that facilitate horizontal collusion among the distributors, in violation of Section 5 of the Federal Trade Commission Act. Second, when viewed individually, each distributor's arrangement constitutes an unreasonable vertical restraint of trade under the rule of reason." .
Syphrus Records cites, "The Federal Trade Commission estimates that the industry's "Minimum Advertised Price" policy may have cost U.
