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Online music sellers scrutinized

Wednesday, Aug. 8, 2001 | 11:01 a.m.

SAN FRANCISCO -- The efforts of five major record companies to join forces to sell their music over the Internet are inviting increasing attention from regulators and legislators who want to make sure that the companies do not engage in anticompetitive behavior.

In the latest development, the Justice Department, which overseas antitrust investigations, has been in contact with several of the companies, people close to the companies said Monday.

The disclosures coincide with a report in the Wall Street Journal on Monday that said the Justice Department had launched a preliminary investigation into two Internet ventures: Pressplay, backed by Sony Music and Universal Music Group, and MusicNet, backed by EMI, BMG and AOL Time Warner.

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