Amid reports of new Apple streaming music service, antitrust violation may be obstacle

Reports that Apple is starting a new streaming music service sent Pandora’s stock price tumbling and sparked talk that Apple may be regaining its footing after several difficult months. But experts say there is at least one potential obstacle ahead for the company — federal antitrust laws.

Apple’s iTunes is the leading seller of digital music, with estimates of its market share running above 60 percent. That means regulators are likely to monitor any move into a related business to ensure that the company isn’t improperly using its muscle to squeeze out competitors, which could lead to higher prices for consumers, say experts in antitrust law. Simply creating a new music streaming service — even if it posed a serious threat to Pandora, Spotify or any similar company — would not be enough to put Apple in legal jeopardy. U.S. antitrust law is designed to protect consumers, not competitors. More choice, especially when offered by a respected company such as Apple, is likely to please many consumers. Yet size can generate unwanted federal government attention. Experts say there are elements of a potential antitrust case against Apple, depending on how it goes about creating its streaming-music business.