AllofMP3 hits back

[Guest Stuge]

Controversial Russian MP3 site, AllofMP3.com, along with its hosting firm, Mediaservices, has hit back at the credit card companies that banned it from making sales last week.

Visa International and MasterCard International suspended payment functions for MP3 sales via the site over concerns about the legality of the operation. AllofMP3.com typically charges around US15 cents for a three-minute song and US$2 or less for a whole CD and was claiming legality under Russian law.

But the MP3 seller has hit back at the accusations, claiming that “the action taken by the world's largest payment processors is arbitrary, capricious and discriminatory because Visa and MasterCard lack the authority to adjudicate the legality of AllofMP3's activities and its determination that the company's activities were illegal is patently erroneous and without legal merit.

“AllofMP3 has not been found by any court in the world to be in violation of any law,” the company said.

The AllofMP3 operation is becoming a major bone of contention between the US and Russia in negotiations to secure Russia a place in the World Trade Organisation.

“Visa and MasterCard should immediately re-qualify AllofMP3," said Vadim Mamotin, director general at the company. "There is no valid reason and absolutely no legal basis for the action."

Mamotin claims that Visa and MasterCard made the decision on factors other than legal grounds “since the decision was not based on an adjudicated verdict by any court in the Russian Federation or, for that matter, anywhere in the world.”

AllofMP3 said it will pursue every course of action, including legal options, to reverse Visa's and MasterCard's decision.

http://www.itnews.com.au/newsstory.aspx?CIaNID=41180

[JustAnUnCoolCat]

At the end of the day, it's kinda as grey an area for AllOfMP3 to fight as it was for those setting out to prove the legality of AllOfMP3 in the first place.

Where the legality of the supply/transactions/supply was in question, re AllOfMP3, was highly hampered by the non-disclosure aspect they employed vs those investigating (noone with nothing to hide, hides behind the law like they do), the reverse face (the topic in question) is a little more clear cut.. yet still grey.

After all, there are contractual issues/grounds that the operation can use to try to support an apparently unjust and possibly unfounded action by the credit operators.

But i suspect at the end of the day that the mere protection vs money laundering rules and legislation that the financial world are supposed to employ, will be the argument the CC providers and handlers will use.

After all, there is still lot of unclarified (mostly because the people behind AllOfMP3 aint talking to defend themselves) aspects which leave certain people (myself included) to wonder how much of the operation is really funding stuff worse... such as criminal activity.

After all, it's not a total exaggeration when it's said there's almost nothing going on out there in the Fed that involves money transactions that aint been tainted at some level by the carrying/passing/use of highly dodgy cash at some level (intentional or otherwise).

Well, putting aside what i think..., as long as the CC providers and handlers can claim potential suspicion of the operation being a money launderer or part of a front of operations that is effectively funding less desireable activities, there aint a lot that can be done to make a case vs the CC operators/handlers til the suspected do indeed go full disclosure to totally disprove all myths and suspicions etc.

But AllOfMP3 aint known for their desire to do such a thing, hell they hide behind generic 'legality' disclaimers which are so transparent they are laughable, and rarely say a word in public terms unless it's attention seeking

Well, time will tell. Mind you, i'll expect the evangelistic 'bible-bashers' of the AllOfMP3 fan base to come screaming and shouting in defense of the company/business/operation/farce

'Tom Kat'

[maxthrusters]

Whatever. It's legal in Russia, it's legal where I live. Well, to clarify: it's not "illegal". Artists/rights holders who want their cut can get paid from ROMS. So far, for political reasons, they choose not to.

As for money laundering, mafia ties, etc...come on. What evidence is there of this? Seems a stereotype to me.

When people mention allofmp3's financials, or rather their non-disclosure of such, my first reaction is "OK, well, what was YOUR income for last year? How much tax did you pay? Total dollar figure for charitable contributions? Political contributions and to what party? What other deductions did you claim? What is your bank balance?". Of course I wouldn't want to answer such questions myself in public, and why would allofmp3? They are a privately-held company.

Anyway I'm not screaming and shouting or trying to be rude to anyone, but my opinion differs. I agree the entire situation is a farce though.