Elon Musk's social media platform X has taken a swipe at its music industry rivals by filing an antitrust lawsuit against 18 major music publishers, including Sony, Universal, and Warner. The tech giant alleges that these companies and the National Music Publishers Association (NMPA) have been colluding to force X into buying industry-wide licenses at exorbitant rates.
According to the lawsuit, filed on Friday, the companies involved are attempting to leverage their combined market power to coerce X into purchasing all available licenses from each music publisher. This move would deny X the benefit of competition among individual publishers and leave it without a way to host thousands of songs on its platform.
X claims that this is an unfair practice and seeks a court order allowing it to negotiate deals directly with individual publishers, rather than being forced into paying high rates for industry-wide licenses. The company's lawsuit also demands unspecified damages from the defendants.
The dispute between X and the music publishers has been ongoing for several years, with the NMPA previously filing its own 2023 lawsuit against X accusing it of engaging in copyright infringement. Despite near-settlement talks in November, both parties claimed they had made "substantial progress" towards a resolution just days before the new lawsuit was filed.
Industry experts note that this is not an isolated incident, as many emerging platforms have faced similar lawsuits from music publishers and trade organizations in recent years. These cases typically result in deals being struck between the companies involved, with X reportedly purchasing licenses at high rates to avoid further disputes.
According to the lawsuit, filed on Friday, the companies involved are attempting to leverage their combined market power to coerce X into purchasing all available licenses from each music publisher. This move would deny X the benefit of competition among individual publishers and leave it without a way to host thousands of songs on its platform.
X claims that this is an unfair practice and seeks a court order allowing it to negotiate deals directly with individual publishers, rather than being forced into paying high rates for industry-wide licenses. The company's lawsuit also demands unspecified damages from the defendants.
The dispute between X and the music publishers has been ongoing for several years, with the NMPA previously filing its own 2023 lawsuit against X accusing it of engaging in copyright infringement. Despite near-settlement talks in November, both parties claimed they had made "substantial progress" towards a resolution just days before the new lawsuit was filed.
Industry experts note that this is not an isolated incident, as many emerging platforms have faced similar lawsuits from music publishers and trade organizations in recent years. These cases typically result in deals being struck between the companies involved, with X reportedly purchasing licenses at high rates to avoid further disputes.