EU iTunes Antitrust Probe

[BoyBach]

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.

[Henri Gaudier]

... I want legislation! I'm sick of Apple screwing us Europeans. The whole thing is a rip off. I hate the principals espoused by the WTO but on this occasion I'd like to hold big business to them. They are limiting me through unfair and restrictive practices from buying music from the Canadian store where I believe they pay 0.99 CAD which is 0.65 euro or 44 pence. As far as I understand the heavy handed principals of globalisation this kind of protected market is illegal. As for anyone about to mount a copyright licence counter argument for different territories - don't! That's just another way for big business to screw you too. Also charging more for non DRM songs. There's no end to their greed is there?

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.

[garybUK]

Finally!! It's about time! I love the convenience of the iTunes store but they have been operating ILLEGALLY in the EU for some time now.

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.

[clevin]

the "agreement between apple and records companies", Apple should have been tougher in the agreement if it actually "long wanted to offer a flat price". lol

guess how much the fine would be?

last time I checked, M$ was fined 1B.

[MacRumors]

AP News reports on a possible probe into Apple's online music store:

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."

[princealfie]

Finally, it's about time. Perhaps now I can order tunes from the French or German iTunes. Free the system!

[shigzeo]

it would be nice to have centralised distribution. there are too many good musiks that are not available to countries because of this policy. If it has to be changed from the distributors standpoint, then so be it, but it must change.

[longofest]

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.

[killmoms]

This is idiotic. I guess they haven't heard of how record companies don't license across national borders.

Also, someone has to say it...


NOT THE PROBE! I hope they use Lube™.

[princealfie]

Originally Posted by longofest

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!!!

[raggedjimmi]

This is silly. They want a giant single EU server powering iTunes rather than country specific ones, yet you can no longer import music into the UK from anywhere else in Europe.

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.

[dernhelm]

What with the DRM free tracks from EMI and other record labels soon to follow, this "problem" will go away on its own. There won't be a "country specific" set of music stores, there will be one international portal. Apple would have nothing to gain by maintaining individual "stores" for each country.

I would think the EU would have bigger fish to fry than a short-term problem.

[Poff]

This is good for the British iTunes - they pay way too much.

(About 20% more than us Norwegians, and they even have less VAT than us.)

[shawnce]

Originally Posted by princealfie

It's simple. Just allow people to download tracks from any country they want.

If only Apple had the right to do that... you think Apple wanted to go out and negotiate for distribution rights in each country like they had to? ...Apple would have loved to negotiate single distribution rights for all of the EU but that model doesn't exist at this time.

[crees!]

Originally Posted by dernhelm

What with the DRM free tracks from EMI and other record labels soon to follow, this "problem" will go away on its own. There won't be a "country specific" set of music stores, there will be one international portal. Apple would have nothing to gain by maintaining individual "stores" for each country.

I would think the EU would have bigger fish to fry than a short-term problem.

I still though think these are two separate issues. One being DRM, the other being that the labels want to restrict which countries have access to which groups. Still, you can go on eBay and buy a record from another country. What's the difference? All and all it comes down to the labels changing their monopolistic practices.

[zombitronic]

Is it possible for someone in Europe to connect to the United States iTunes Store and download from across the ocean, or do ISPs restrict that? And if not restricted by protocols or ISPs, then what?

[Poff]

Originally Posted by zombitronic

Is it possible for someone in Europe to connect to the United States iTunes Store and download from across the ocean, or do ISPs restrict that? And if not restricted by protocols or ISPs, then what?

It is only restricted by having an american visa or not. An american can still use the american iTS on vacation in europe.

[princealfie]

Originally Posted by shawnce

If only Apple had the right to do that... you think Apple wanted to go out and negotiate for distribution rights in each country like they had to? ...Apple would have loved to negotiate single distribution rights for all of the EU but that model doesn't exist at this time.

Who cares about distribution rights? This is a secret form of censorship not to let us get to listen to foreign music. I think that there needs to be one worldwide standard!

Grrr... how frustrating. I don't want to have run through loops just to download a track from the Fantastichen Vier or Vanessa Paradis. Europop here we come!

[melevittfl]

Originally Posted by zombitronic

Is it possible for someone in Europe to connect to the United States iTunes Store and download from across the ocean,

No.

or do ISPs restrict that?

No.

And if not restricted by protocols or ISPs, then what?

Apple. They check the registered address of the credit card used to open the iTunes account and only allow you to purchase music from the iTunes store that matches the country you're in.

[running]

Originally Posted by zombitronic

Is it possible for someone in Europe to connect to the United States iTunes Store and download from across the ocean, or do ISPs restrict that? And if not restricted by protocols or ISPs, then what?

You have to have credit card in that state (US, Germany) or you have to buy the gift card there. I know it, because there is no iTunes Store in my country.

[melevittfl]

Originally Posted by killmoms

This is idiotic. I guess they haven't heard of how record companies don't license across national borders.

Which is why, according to the article:

"Apple and several major music companies had been sent a 'statement of
objections' "

[ogee]

I dont accept the "its the record label" cr@p. I can order a CD from Amazon france for delivery to Germany, or Amazon uk for delivery to italy. Why can I not download fro iTunes UK. Whats the difference?

The EU is a single market.

Sky TV also uses the same excuse for not providing its services to non UK residents, but they allow pubs in Spain to subscribe. I know the EU commission was investigating, but never heard what happened.

[shawnce]

Originally Posted by princealfie

Who cares about distribution rights? This is a secret form of censorship not to let us get to listen to foreign music. I think that there needs to be one worldwide standard!

Apple has to care or else they would have been in court long ago... yeah it would be great for a regional or single distribution right system but that isn't going to magically happen without many parties and governments changing the structure of the system.

[Mydriasis]

Like some people have already mentioned, the main problem is the price difference between countries.

EU law says that products supplied to mulitple countries must have the same price in each country.

The big problem is the UK iTunes store where one song costs 0.79 £ which would be about 1.17€. The EU Commission is threating Apple with a fine of 488 million € (10% of yearly sales).

[Queso]

This is the beginning of something bigger. My guess is the real targets here are the media giants, those companies owned by Rupert Murdoch and Silvio Berlusconi, and it's not just about music. The EU wants to harmonise the licensing of all media across the Union and make it more like the system in the USA.

Apple is just caught in the crossfire.