Question

What was the threat iTunes created? What did the courts do about it?

Option 1: Threatened traditional record stores; no court action
Option 2: Threatened record labels; antitrust investigation
Option 3: Threatened live concerts; copyright infringement lawsuit
Option 4: Threatened radio stations; regulatory restrictions

Answer 1

iTunes threatened traditional record stores by introducing a digital platform for music purchases. The courts did not take action against iTunes specifically, but a Supreme Court ruling addressed copyright infringement related to file-sharing software.

Step-by-step explanation:

iTunes threatened traditional record stores by establishing a digital platform for purchasing and downloading music, which posed a direct challenge to physical record sales. The courts did not take any specific action against iTunes in relation to this threat. However, the Supreme Court ruling in MGM Studios v. Grokster (2005) set a precedent by holding companies distributing file-sharing software responsible for copyright infringement.