Digital music prices: are they illegally fixed?

A federal lawsuit alleging collusion among the major music labels over digital download pricing can proceed, a three judge Appeals Court panel ruled today.

As lawsuits go, this one’s a humdinger, charging that the labels engaged in a price-fixing conspiracy to ensure that they each made about 70 cents per track sold online, and that no one received a better deal than anyone else. The case had earlier been tossed for a “failure to state a claim,” but the Second Circuit Court of Appeals has reinstated it and ordered the trial judge to proceed with the case.