The nation’s largest music companies have agreed to pay over 140-MILLION dollars to Iowa and other states to settle a lawsuit over the pricing of compact discs. Bob Brammer, a spokesman for Iowa’s Attorney General, says the states accused distributors like Sony, Warner, Electra and others of thwarting major retailers like Best Buy and Target from selling CDs at lower prices. Brammer says the music industry “heavily punished” retailers who tried to sell CDs at cheaper prices, which prevented discount moves — and violated antitrust laws. Brammer says the $140 million will be paid half in cash, and half in CDs. Brammer says the CDs will be distributed to libraries, schools and other non-profit agencies. The money will be returned to consumers eventually. Brammer says a judge must approve the settlement, so the details of how consumers can apply for a piece of the cash won’t be available until the beginning of next year.
Iowa's Radio News Network
