Will the EU Topple Apple’s iTunes Empire?
The European Commission on Tuesday said it has launched an antitrust probe into Apple’s iTunes, its method of selling music over the Internet, and its agreements with major record labels.
Distribution agreements Apple has inked with record labels to sell their music on the iTunes Music Store in European Union countries “contain territorial sales restrictions which violate” EU competition rules, the Commission claimed, noting that consumers are restricted to downloading singles or albums from the iTunes site in their own countries. Prices vary from country to country.
“Consumers are thus restricted in their choice of where to buy music and consequently what music is available, and at what price,” the Commission said in a statement. “For example, in order to buy a music download from the iTunes’ Belgian online store, a consumer must use a credit card issued by a bank with an address in Belgium.”
The EU Demands
The Commission afforded Apple two months to answer questions in its letter. If Apple is found guilty of breaching EU antitrust rules, the company could face fines up to 10 percent of the iPod maker’s worldwide annual revenues.
This is not the first time Apple has come under fire by EU interests. European consumer rights groups in Germany, France, the Netherlands, and Nordic countries are actively working to force the company to change its rules.
Specifically, consumer advocates are insisting Apple remove limits that prevent consumers from playing the downloads they purchase at iTunes on competing MP3 players. Norway already moved to force Apple to remove its proprietary technology by October 1 or face legal action.
Bringing Down an Empire?
Apple has stated publicly that it wants to operate one site for the entire European bloc, but is forced to depend on the record labels to grant it those rights. Apple is maintaining that its actions do not…
