Labels ultimately have the final decision (can remove all music of theirs from services when they get too greedy, therefore making the services useless), and hopefully they don't let this happen. $9.99 is a fine pricing point for the industry, and Apple is considering doing this just to be top-dog due to being tired of overshadowing by Spotify.
If Apple wants to set their prices lower than everyone else, then artists/labels still need to take the same share and Apple makes less with the full $2 from every subscription coming out their pocket.