It seems that they have been back in the business of blocking third party widgets, MySpace confirmed the ban issue. They banned the fast growing Project Playlist. From the previous year 2006 and 2007 they block iMeem, Photobucket and many others, this time MySpace is doing it under threat of litigation from the major labels.
When my space confirmed that they already banned it, noting that they have received infringement notices from the “major music companies”:

MySpace is an open platform that welcomes all developers to build rich and legitimate applications for its global community. We take copyright issues very seriously and our goal is to help developers build a substantial business by creating an environment that respects rights holders and protects their content.
MySpace has received notices of infringement about Project Playlist at different times from several of the major music companies currently suing Project Playlist. Per our policy of taking very seriously the requests of rights holders to block access to third party sites that are believed to be infringing, we have evaluated the requests of the major music companies and determined that it is in our best interest not to allow Project Playlist widgets on MySpace, and effective immediately, we will no longer be allowing these widgets within the MySpace platform. Any third party widgets (including any music widgets) are welcome on MySpace so long as they do not include infringing content—we encourage our users to utilize the many legitimate applications found on MySpace and across the Web.

The major companies include Warner Music, Universal Music Group and EMI and they have been in litigation with Project Playlist since April 2008. it seems that it is a both ban and scrub, which means that users can’t add new widgets and all old widgets are being removed from the site.

Project Playlist was already banned by MySpace early this March but the company was able to have success. That’s why it was not the first time they have this kind of issue regarding being ban.

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