EDM label wants Beatport investigated

An Italian record company is asking for an investigation into whether third parties are manipulating EDM digital company Beatport’s charts.

The Wall Street Journal reported that Art & Music Recording made the request to the Delaware judge who is looking after the bankruptcy matters of Beatport’s parent company SFX Entertainment. Rule 2004 of the bankruptcy code allows creditors to launch examinations of a company’s financial health and past operations.

SFX is already being sued by AMR in a separate case after six of its licensed tracks were removed from Beatport’s store. AMR in its lawsuit insisted it had done nothing to be accused of “juicing” the charts, and that SFX refused to provide any evidence.

AMR says that SFX creditors need to know if Beatport’s influential charts are not transparent.

It said in court documents, “AMR is looking for evidence that as-yet-unidentified third parties are interfering with and manipulating the very ‘bread and butter’ of Beatport’s operations—its digital music charts.

“Favorable placement on Beatport’s website and charts creates high visibility for the DJs and their labels, which in turn creates demand for the DJs, thereby generating significant income to the DJs and their label.”

After New York-based SFX filed for bankruptcy in February, Beatport was one of the assets it initially wanted to sell. The price tag was US$50 million. It changed its mind and said it would instead “refocus” the business. Some of its services and mobile app have been closed.