Italy to investigate Meta (META) over abuse of position in music rights case

Italy’s antitrust authority announced Wednesday that the regulator would be investigating Meta Platform (NASDAQ: META) over the possible abuse of its position in talks over the rights to music posted on Meta's platforms and potentially hurting competition in the sector.

The dispute involved the Italian society of authors and publishers, SIAE.

Last month, Meta, which owns Facebook, Whatsapp and Instagram, failed to reach a deal with SIAE to renew the copyright license. As a result, all songs under SIAE's books have been blocked on its platforms since March 16.

According to the antitrust regulator, Meta may have "unduly interrupted the negotiations for the stipulation of the license for the use on its platforms" of SIAE's music rights.

Meta interrupted talks for the renewal of expired contracts by eliminating SIAE-protected music content from its social platforms, but didn't provide the required information to SIAE to negotiate under the "principle of fairness and transparency," the regulator said.

"We will fully cooperate with the inquiry from the Italian Competition Authority. Protecting the copyrights of songwriters and artists is an important priority for us," a spokesperson for Meta said on Wednesday.

Shares of META are down 1.65% in mid-day trading on Wednesday.

By Michael Elkins | [email protected]

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