Apple iTunes country protection under EU scrutiny

03-04-2007

Apple iTunes country protection under EU scrutiny
The European Commission has confirmed it is investigating alleged "territorial restrictions" in online music sales by Apple's iTunes and several unnamed major record companies.

According to today's statement of objections, the fact that consumers can only buy music from the version of iTunes in the country where their credit card is registered is a breach of the commission's treaty.

"Consumers are thus restricted in their choice of where to buy music, and consequently what music is available, and at what price," the EC said.

"The commission alleges in the statement of objections that these agreements violate the EC treaty's rules prohibiting restrictive business practices."

Apple, which along with the unnamed record companies has two months to respond to the charges, insists it has "always tried" to create a single pan-European iTunes store.

"But we were advised by the music labels and publishers that there were certain legal limits to the rights they could grant us," Apple said.

Brussels' probe into iTunes' country protection followed a complaint two years ago from British consumer watchdog Which? alleging that UK consumers were paying up to 20 per cent more for songs online than their German or French counterparts.

The EC could impose a fine of up to ten per cent of the worldwide turnover of Apple and the major record companies.


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