EU questions iTunes pricing

A consumer group complains that iTunes cost more in Britain than in the rest of Europe. The European Commission is interested.

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[jypeterson]

US equivalent pricing reflects several factors

There are several factors that goes into the pricing model for songs across boarders. First, and foremost, is the exchange rate. The dollar has become much weaker against the Euro and the Pound, so you can expect a growing divide. Second, the Brittish do not completely adhere to the EU agreement. They still have the Pound instead of adopting the Euro. Therefore, they also do not subscribe to all of the costs and benefits of EU membership. Third, their exists separate liscensing across Europe for artists. France will have different liscensing requirements than Germany and Spain, while Brittan has other licensing laws as well. Don't forget that iTunes is also less expensive than the other pay for music services in Brittain right now, the reason why they are singled out is that 1)they have the majority of the market, 2)they have entered into other countries where other services have not.
I just think that if Apple is forced to change pricing structures in Brittain, then the other companies will have to follow suit, and Apple can take the hit to the bottom line. I do not think that the other companies can. This will cause other companies to exit and reduce competition, strengthening Apple's market position in Europe. If the other companies are lobbying for this, it will backfire on them.