Toshiba EMI Ltd. said Monday it has accepted a Fair Trade Commission order to end a cartel in mobile phone ring-tone services.
The FTC had ordered Toshiba and four other record and music software companies to stop blocking other firms from entering the market for the so-called ring-song service, an upgraded ring-tone service. The other four companies have rejected the order.
Toshiba EMI doesn't agree with the views expressed in the FTC order, an official said, but the music company has decided to accept the order in view of the cost of likely prolonged hearings and other legal procedures.
The four other companies -- Sony Music Entertainment (Japan) Inc., Avex Network Inc., Victor Entertainment Inc. and the Universal Music Group -- have disputed the FTC charge.
The commission on March 24 ordered the other four companies and Toshiba EMI to stop refusing to allow other firms to use songs recorded on CDs they sold for mobile phone ring-tone services.