Federal Trade Commission To Investigate Apple Subscription Service

The US Department of Justice and the Federal Trade Commission have launched an investigation into Apple's new iTunes subscription based service to see whether it violates anti-trust laws.

According to The Wall Street Journal sources familiar with matter claim the investigations are at a preliminary stage and might not lead to a more formal investigation.

Meanwhile, the European Commission has also showed a lot of interest in Apple's new initiative and said it was 'carefully monitoring the situation'.

Apple's newly launched subscription service is built on the model followed by app The Daily from News Corp. Apple is offering content providers to deliver newspaper, magazine, music and video subscriptions to their customers on a weekly, monthly or yearly basis. Apple plans on keeping a 30 percent cut of the revenue from customers it brings to the publishers.

Apple are not stopping publishers from selling digital subscriptions themselves, though there are concerns that the company's terms are very restrictive and deliberately push clients towards use Apple's own system for the sales.

The US Department of Justice and the FTC want to check if Apple is violating anti-trust laws by forcing customers into such a model. One such condition is that users will be compelled to give Apple customers the cheapest deals available.