Reports that Apple is starting a new music-streaming service sent Pandora's stock price tumbling Monday and sparked talk that the tech giant 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 in excess of 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, according to antitrust law experts.
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.