The cost of downloading music from the internet, using services such as Napster, iTunes and TescoDownloads may be reduced if a price fixing case being brought against the major music labels in New York by Eliot Spitzer, the state attorney general, is proved.

Investigators acting on Mr Spitzer’s behalf have summoned several music publishers in a preliminary inquiry as to whether they have colluded in price fixing.

A spokesman for Mr Spitzer said his office was seeking information on wholesale prices charged by companies including Warner Music, Sony BMG, Vivendi Universal and the London-based EMI.

In September, Steve Jobs, the chief executive of Apple, labelled music publishers as “greedy�? and blamed them for high prices on their iTunes service. Apple are also under investigation for alleged price fixing by the European Commission.

Should the New York investigation demonstrate price fixing, publishers may be forced to reduce the wholesale prices offered to download websites.

Source: timesonline