Apple cuts UK iTunes prices
Heads off EC investigation
The European Commission has ended its antitrust investigation into Apple after the computing giant agreed to cut the price UK consumers pay to download music for their iPods.
Apple said it would cut UK prices to bring them into line with the rest of Europe. But it warned record labels:
Apple currently must pay some record labels more to distribute their music in the UK than it pays them to distribute the same music elsewhere in Europe. Apple will reconsider its continuing relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months.
Consumers pay the same price in Austria, Belgium, Denmark, Germany, Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland and Spain. European consumers, identified by the address on their credit card, pay 99 Euro cents while UK users pay 79 pence.
A spokesman for Apple could not tell the Reg what level prices would be set at.
The European Commission said it began investigations after a formal complaint from UK consumer group Which?. The Commission said its probe found there were no agreements between Apple and major record labels on how iTunes is run in Europe, so it is ending its investigation.
Competition commissioner 'Steely' Neelie Kroes said: "The Commission is very much in favour of solutions which allow consumers to benefit from a truly Single Market for music downloads."
Which? welcomed the decision and said it hoped it would set a trend for other companies to end "Rip-off Britain" pricing. Which? said:
We complained about Apple’s price discrimination back in 2004 - so we’re glad they’ve finally agreed to give British music lovers a fair deal.
The fact they’ll soon be able to download tracks for the same price as European customers will be music to the ears of UK iTunes customers. We hope other internet companies – including online music companies - will follow Apple’s lead and match UK prices to prices in continental Europe.
The pressure group said it would like Apple to allow people to download music from whichever iTunes store they choose.
Where to buy - not where it is sold
EU could have fixed this problem in a very different way. Let Apple charge what it likes where it likes. But force Apple to let me buy it from where I want. Just because I have a UK IP address and UK credit card is no reason to stop me buying (downloading) from another country's Apple site, paying in Euros (I'll take the risk on currency exchange rate via my credit card) and deciding what is the best deal for me. We have a free trade market in Europe (don't we?) so why can't I buy at 99 Euro cents from a non-UK Apple site, eh? Answer me that, EU. Aren't Apple infringing some regulations by stopping me? (Same as the car manufacturers could not stop Uk buyers buying at Euro prices from Germany, etc)
@ Anonymous Coward
> just drop the price drastically of the DRM free variant
Er, they already did that last year. Non-DRM tracks from the iTunes Music Store are 79p too.
now for Adobe and it's products across the world
still fuming that Adobe a products are TWICE what they cost in the USA (the most subsidised country in the world).....