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Google music store?

iTunes could finally have some major competition with the potential launch of a Google music store later this year.

The top major music labels would love for Google to challenge Apple’s monopoly over digital downloads, as they have been trying to convince sites such as Facebook, Google, and AOL to take on iTunes for years. Their dreams my finally become reality, as CNET reports that Google CEO Eric Schmidt rubbed shoulders with the top four major record label executives at the Consumer Electronics Show in January.

The evidence piles up as TechCrunch recently reported that they found a “Google Music” logo hosted on Google’s domain, and at Google’s I/O conference last month they demonstrated a new web-based iTunes competitor.

Though Amazon and Myspace Music have both tried to compete with Apple’s dominance of legal online music sales, they failed to even make a dent. However, Google has an enormous reach with web consumers, and have reportedly worked with SimplifyMedia and Youtube’s general counsel Zahavah Levine to create their new music service.

Google told the labels that their music store would include digital downloads, but would also stream music tied to Google’s search results. This cloud service would allow PC and Mac users to connect their computer’s iTunes or WinAmp libraries to other web-enabled devices. iTunes is racing to release a similar cloud service, but Google is poised to strike first. With the release of Google’s Android mobile phone operating system threatening to overthrow the iPhone, Apple may actually have something to worry about.

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