EU charges Apple, record companies on iTunes sales

European Commission says limitations on sales from iTunes stores violate European business rules.

The story "EU charges Apple, record companies on iTunes sales" published April 2, 2007 at 4:17 AM is no longer available on CNET News.

Content from Reuters expires after 30 days.

[suyts]

another fine U.S. company

I've never been a fan of Apple but I can't help but notice a trend here. Another industry leading U.S. tech co. is being threatened by the EU. Stop the B.S. Apple is offering a product. If you don't like it or the price, don't buy it. It is my hope that the U.S. retaliates by threatening the auto manufactures of the E.U. Maybe then they will understand that free trade is only free if it is recipricated.

[sumwatt]

I was going to hand you your hat

But I did take time to read your comments. The EU (the jurisdictional legal and governmental body, not the all of the people) is just dreaded EU snobbery in the guise of a jurisdictional legal framework. I'm still waiting for the EU to force Burger King to offer Le Big Mac in all their outlets.

EU socialism and social snobbery is still promising to let you have your cake and eat it too. Dont like Microsoft? buy an Apple or buy hardware and plunk Linux on it. These people act like they have no choice.

That's ok, we can still be snobs to the Chinese - they are what Japan was to the US in the 1980's. Just look at the new laws laid on Chinese imports under the guise of "anti-dumping". This is the problem with "fair trade" - no one is sure who it is supposed to be fair to.

If the Internet makes the world smaller, governments only make the fences higher.

[dirk goedseels]

not Apple threatened, but the music industry

the EU commision wants to saveguard that all EU citizens are treated equally (just like all US citizens amongst the different states are). What the music industry forces Apple to do, is charge different amounts in different states (like e.g. in Texas, you would have a different price than NY) as well as songs that are not equally available (again, songs available in Nebraska are not in Utah).
Of course, difference in price is mainly due to the fact that UK still likes their Pounds, Norway their Krones, and that in time the exchange rates do change. I presume Apple could solve this easily by selling their songs in EU solely in Euro's, and let the CC handle the exchange rates.

[MatKin]

You don't know what you are talking about..

Before saying this kind of things you should think a bit more..
The EU Commission is only trying to guarantee equal treatment to all EU consumers, meaning that if you want to sell your product in the EU market you have to do so in the same way across all the EU member states.
Obviously this is not always economically efficient (as Ramsey could say..) but this is the law.
Hence if you want to sell in Eu you must obey to the legal framework that is defining the rules in the market.
Furthermore don't worry because there are bilateral agreements between EU and US on this kind of things but in this case I don't know if US antitrust authorities would say anything different to what has already been said by the EU commission, since the antitrust law in both the markets are based pretty much on the same underlying principles.
Free trade means that you can trade freely in my market as long as you respect my legal framework that is something different to the situation where you can do whatever you want!!
Free market is I don't create artificial barriers to entry only to worsen you off but it does not mean that you can come and behave as you would do if any rule exists at all!!

[J.G.]

DRM is across the board

All digital download services use DRM, with Apple's being the least restrictive. Here's hoping that information was included in the Reuters' article before it was edited. If not, the reporter is inept.

We will see how non-DRMed downloads work out when iTunes institutes DRM-free EMI music in May.

I don't think the labels will budge much on the European pricing issue.

[integer-poet]

indeed inept

The story includes the line "MP3 downloads from competing formats" as if that makes any sense, so somebody involved was indeed inept.

[jborg]

Not a pricing issue

It's really about choice, not price. The price is the same in most European countries, but you can't buy the same music in two states.

It's almost like if you could only buy Rap music if your address is in New York, but had to move to Tennessee to buy Country music...

[skeptik]

hmm... exchange rates?

"iTunes purchasers in France and Germany need pay only 99 euro cents ($1.32) for each song they download, compared with the higher 79 British pence ($1.56) paid by those living in Great Britain."

Could be the problem right there... Maybe the EU should start acting more like a single unit. I'm guessing laws are different in these different countries as well. I know they are in regards to copyright and circumvention.
For all you comparing this to buying in different states, perhaps you've missed that every state uses the same currency and abides by the same copyright laws. Are they the same price in Canada or Mexico?

This is just some hyped up EU snobbery... they can't get along together except to agree that those upstarts on the otherside of the pond need to be taught a lesson. Nevermind that they're the ones using our products rather than producing their own. Even Russia has a wildly popular alternative to iTunes.

[Siegfried Schtauffen]

Glasshouses

Apple is not the only company that do this. Lego, a European company, does the same thing. I don't understand why they are picking on Apple.