EU iTunes Antitrust Probe
The Financial Times said Apple and several major music companies had been sent a "statement of objections" alleging that the deals underpinning the sale of music through iTunes in Europe might violate competition rules.
The charges are centered around the fact that iTunes limits sales to country-specific borders, rather than one central European music store.
Apple, however, maintains that this is due to record label restrictions:
Apple spokesman Steve Dowling said the company wanted to operate a single store for all of Europe, but music labels and publishers said there were limits to the rights that could they could grant to Apple.
"We don't believe Apple did anything to violate EU law," he said. "We will continue to work with the EU to resolve this matter."
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(View all)The EU has launched a probe into what Apple's online music store iTunes charges users across Europe, accusing it of restricting customer choice.
Brussels believes agreements between Apple and record companies violate EU laws by preventing users in one country buying music from a site elsewhere.
The move follows a complaint by UK body Which? that British users have to pay more to download songs than others.
Apple said it wanted to offer a single European service but faced obstacles.
Different pricing
The Commission's move is unrelated to an agreement, announced on Monday, between iTunes and EMI to make the latter's music available online without piracy protection.
Brussels has written to iTunes and a number of unnamed record companies to notify them of their objections to the way music is sold, the first step in formal proceedings.
"Consumers can only buy music from the iTunes online stores in their country of residence and are therefore restricted in their choice of where to buy music," said EU competition spokesman Jonathan Todd.
Research by Which? in 2005 found that UK users paid 79p (1.16 euros) to download a song compared with 66p (99 euro cents) in France and Germany.
Apple said it had always wanted to offer a fully pan-European service but was restricted by the demands of its music partners.
"We were advised by the music labels and publishers that there were certain legal limits to the rights they could grant us," it said in a statement.
The companies targeted by Brussels have two months in which to respond to the charges.
- BBC
It's about time.
We've being paying too much on too many things in the UK for far too long.
The probe - it will take millions of euros and months to complete and at the end of the day you'll have a 700 page report that says "Apple are a bit naughty but what can you do?"
As for me it doesn't effect me as I prefer vinyl over CD and a CD over a download.
It's my RIGHT as a EU citizen to buy from any store anywhere in the EU, however Apple seem to deem this as not possible.
guess how much the fine would be?
last time I checked, M$ was fined 1B.
If this lawsuit goes through (which I doubt), I'd expect to see Apple have to pay fines. Apple may have a case to then sue the labels, but I don't know if they'd want to do that.
In the end though, I expect a situation similar to what just happened with the DRM thing... Apple will squiggle out of their predicament at the last minute and avoid going to any kind of trial.
Also, someone has to say it...
NOT THE PROBE! :eek: I hope they use Lube™. :D
Unfortunately for Apple, it is Apple that is liable because they are the ones that operate the store and facilitate the interaction with the consumer.
If this lawsuit goes through (which I doubt), I'd expect to see Apple have to pay fines. Apple may have a case to then sue the labels, but I don't know if they'd want to do that.
In the end though, I expect a situation similar to what just happened with the DRM thing... Apple will squiggle out of their predicament at the last minute and avoid going to any kind of trial.
It's simple. Just allow people to download tracks from any country they want. I vant my german rap!!! :rolleyes:
The BBC are also reporting on the price of iTunes music in the UK, saying that our songs are 20% more expensive than mainland Europe.
I'd buy so many songs for 50p a pop.
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