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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Apple overtakes Microsoft as biggest tech company 26 May 2010 BP exec: Appears only drilling mud flowing from well 26 May 2010 Apple overtakes Microsoft as biggest tech company 26 May 2010 U.S. to suspend Arctic drilling: Alaska senator 1:11am EDT Lee DeWyze wins "American Idol" as Cowell departs 2:55am EDT Risque Venus brings Moulin Rouge style to French Open 26 May 2010 Ellen DeGeneres starts own record label, signs YouTube kid | Video 26 May 2010 BP monitoring to see if "top kill" plug working | Video 1:45am EDT In BP command center, CEO and Dr Chu plot course 26 May 2010 BP, Transocean workers argued before blast: witness 26 May 2010 Apple overtakes Microsoft as biggest tech company 26 May 2010 Apple overtakes Microsoft as biggest tech company 26 May 2010 Facebook boosts privacy controls amid criticism 26 May 2010 U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 U.S. to suspend Arctic drilling: Alaska senator 1:11am EDT Foxconn hit by 10th jumping death 1:53am EDT Lee DeWyze wins "American Idol" as Cowell departs 2:55am EDT In BP command center, CEO and Dr Chu plot course 26 May 2010 Stalin blocked attempts to kill Hitler: general 25 May 2010 Euro nears 4-year low vs dollar | Video 1:44am EDT U.S. probes Apple digital music dominance Yinka Adegoke NEW YORK Wed May 26, 2010 6:53pm EDT Related News PRESS DIGEST - New York Times business news - May 26 Wed, May 26 2010 Feds looking into Apple's tactics for music: report Tue, May 25 2010 Feds looking into Apple's tactics for music - NYT Tue, May 25 2010 Beer, betrayal, a lost iPhone in Apple device tale Sun, May 16 2010 UPDATE 2-Beer, betrayal, a lost iPhone in Apple device tale Fri, May 14 2010 A customer (2nd L) discusses an Apple product with a shop assistant (C) while customers shop at an Apple store in Tokyo in this August 25, 2006 file photo. Credit: Reuters/Kiyoshi Ota/Files NEW YORK (Reuters) - The U.S. Justice Department is making preliminary inquiries into whether Apple Inc unfairly dominates the digital music market, according to three people whose companies have been contacted by regulators. Technology | Hot Stocks | Media They said the Justice Department contacted some music labels and digital music providers earlier this month. DoJ staff have mostly asked the companies broad questions about the nature of the digital music market, according to two of the three sources, who all spoke on condition of anonymity as the talks were confidential. "It was a very preliminary conversation," said one person. Given Apple's leading market share the broad questions inevitably involved iTunes, these people said. Billboard magazine reported on March 6 that Apple had used its market dominance to prevent labels from agreeing to let Amazon.com exclusively debut new songs. Spokespersons for Apple, Amazon and the Justice Department declined to comment. In the United States, Apple's iTunes Music Store is the largest music retailer and largest digital music store with a market share of about 70 percent. Amazon is the No. 2 digital music retailer with a less than 10 percent market share. Apple and the major music companies -- Vivendi's Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Group -- have had a love-hate relationship in recent years. On the one hand, Apple and its chief executive Steve Jobs are widely acknowledged for having given the music industry a life-line with the launch of iTunes in 2003, when digital music services were struggling to get traction. But iTunes' subsequent dominance, combined with the huge popularity of its devices like the iPod and iPhone, have led to clashes between label executives and Jobs over a range of issues, from copy-protection software to variable pricing. Resentment toward Apple in the music industry has grown as their fortunes have diverged in recent years. The iPod digital music player has helped to drive Apple's resurgence this decade, even as global music sales have shrunk from $26.5 billion in 2000 to $17 billion last year. Apple ended Wednesday with a market value of about $222 billion, surpassing Microsoft Corp as the world's largest technology company, according to Reuters data. Evan Stewart of the law firm Zuckerman Spaeder LLP foresees many antitrust battles in the nascent digital market as companies establish themselves in a new space. "They are trying to gain control in parts of the economy that are growing rapidly and people don't understand them very well," he said. Dominant companies in one part of the economy trying to move into another area raises "legitimate areas of inquiry and concern," he added. The Justice Department inquiry was first reported by the New York Times on Tuesday, citing people briefed on the conversations. (Reporting by Yinka Adegoke; Additional reporting by Diane Bartz in Washington D.C. and Alexandria Sage in San Francisco; Editing by Richard Chang) Technology Hot Stocks Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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