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Apple's iTunes accused of overcharging UK customers

updated 09:45 am EDT, Wed September 15, 2004

Apple iTunes UK under fire

Apple's iTunes music download service has been by the Consumers' Association, according to the BBC: "The group accused the service of charging UK-based customers nearly 20% more than those with addresses and payment details in France or Germany. The group has written to the Office of Fair Trading (OFT) asking it to investigate iTunes for possible breaches of EU competition rules. Apple said its prices should be compared with other UK music downloads...The Consumers' Association said that while iTunes charges UK based customers 79p to download one track, customers in France or Germany only have to pay 99 euro cents - the equivalent of 67p."

by MacNN Staff

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Marook
Forum Regular

Joined: May 1999

0

09/15, 10:02am | report spam | close Reply |
Blame the Rec.Industry!

Amazing that they blame Apple!
It's the Recording industry the set those prices, not Apple. If you think music is expensive, blame the Recording Industry ... why do you think it took this long to even get online????? Blame the RI!

Putta
Junior Member

Joined: Aug 2002

0

09/15, 10:02am | report spam | close Reply |
Don't stop there!

What about iPods, .Mac, iPhoto, Macs and all Apple Software...

haunebu
Dedicated MacNNer

Joined: Apr 2000

0

09/15, 10:09am | report spam | close Reply |
Well, it's true.

Apple's products are ridiculously overpriced in Europe, and this is just one clear example. Even the "cheap" iTunes Music Stores in France and Germany are charging approximately 20% more than the US store, according to the Euro/Dollar exchange rate. 1 Euro = 1.227 Dollars.

testudo
Fresh-Faced Recruit

Joined: Aug 2001

0

09/15, 10:11am | report spam | close Reply |
Stupid american here

I thought GB wasn't part of the EU. Or is it that they just didn't want to get into that whole Euro thing?

Nitride
Fresh-Faced Recruit

Joined: Sep 2001

0

09/15, 10:17am | report spam | close Reply |
You are too stupid...

Apple, you are too stupid to run your own business. So a group of Euro-nannies will step in and "fix" the problem of price differences in DIFFERENT COUNTRIES.

Lord knows you cant charge different prices in DIFFERENT COUNTRIES. Thankfully a bunch of people who *know better* will tell Apple how they should run their business.

Welcome to the EU, Apple!

David R
Junior Member

Joined: Mar 2000

0

09/15, 10:44am | report spam | close Reply |
UK

Maybe the UK should start using Euros like everyone else.

henryblackman
Fresh-Faced Recruit

Joined: Feb 2003

0

09/15, 10:49am | report spam | close Reply |
They are right...

The CA is a very pro-consumer group (!), and has done a sterling job over plenty of "rip of Britain" issues in the past. They are right Apple are charging too much, but it's not exactly Apple's fault.

They point out that EU pricing is cheaper, but this isn't Apple's fault either. Apple have to negotiate with each individual country... which is exactly what the EU is supposed to prevent.

I'm sure the CA is going after because they are high profile, however if they turned their attention to Napster etc., they'd find that Apple are the cheapest.

FYI the CA has had several goes at the music industry over the years because of over pricing (CDs, tapes, and DVDs). This is just their next battle.

John F.
Fresh-Faced Recruit

Joined: Sep 2004

0

09/15, 10:50am | report spam | close Reply |
Sales tax

haunebu, you forget that European prices include sales tax and the US price of $0.99 doesn't. France has a sales tax of 19.6 percent. So with the current Dollar - Euro exchange rate of 0.82, that makes those $0.99 equal to �0.81 without the tax. Now add the sales tax of 19.6 percent and the price becomes �0.97. So that brings us close to the �0.99 Apple charges in Europe. So it's the tax that makes all the difference here! Of course, Apple has to include the high cost of currency exchange and rate fluctuations. And remember, each country in Europe has different sales tax rates.

Roehlstation
Fresh-Faced Recruit

Joined: Aug 2001

0

09/15, 11:19am | report spam | close Reply |
Re: UK

Great Britain has no reason to change to Euros, their economy is too good for that.

JohnnyFive
Fresh-Faced Recruit

Joined: Feb 2003

0

09/15, 11:35am | report spam | close Reply |
Re: UK

Economics has little to do with GB's refusal to replace the pound with the euro. It's a matter of national pride. Hail Britannia!

applemars
Fresh-Faced Recruit

Joined: Apr 2004

0

09/15, 12:50pm | report spam | close Reply |
General taxe on income

I think UK ITMS users should not complain about the prices in the ITMS. The people who live in the UK pay much much less tax on their income!!
To compensate, salestax on all products you buy in the UK is a lot higher than in the rest of Europe. That's a fact why also songs in the ITMS are higher in price compared to France. Everything in the UK is more expensive than in the rest of Europe. Everyone in the UK has more netto income to spend.

John F.
Fresh-Faced Recruit

Joined: Sep 2004

0

09/15, 02:18pm | report spam | close Reply |
Sales Tax?

Applemars, sales tax in UK higher? UK=17.5% NL=19% FR=19.6% BE=21% FI=22% IT=20%. So sales tax in UK higher? Yes, Spain&Germany=16%.

And yes tax on income is lower, but income in general is lower than the rest of Europe.

Go Bells
Fresh-Faced Recruit

Joined: Jun 2004

0

09/15, 03:16pm | report spam | close Reply |
Let's make a Deal

Apple will start charging lower prices to the UK market if the following conditions can be met:

1) All Brittons acknowledge that their country is no longer a superpower, no matter how many Mr. Bean movies and tv shows are produced

2) Emma Thompson is barred from making any more movies

and most importantly

3) We get to swap you Bush for Blair....

Come on, that only seems fair (ok, #3 is probably a dealbreaker, but I have to try something.. it looks like the jerk will win again)

z10n
Fresh-Faced Recruit

Joined: Oct 2003

0

09/15, 05:20pm | report spam | close Reply |
Hmmm

"Well there, old chap. I do believe we have to pay more."

"Well maybe it's because we have this jolly good accent?"

"Right you are."

JTVD
Fresh-Faced Recruit

Joined: Apr 2001

0

09/15, 07:19pm | report spam | close Reply |
UK

re:
'Stupid american here': Yes indeed. GB is part of the EU/EC/EEC.
'You are too stupid': You are, too. The European UNION has rules to prevent companies overcharging customers in different countries within the UNION. While discouraged, this is however not illegal.
To prevent any EC consumer from buying products from any other EC country at local price however is.
Thus Apple making the music store country credit card specific is very dubious and if it is done to comply with pressure from the music industry, said music industry is acting illegally, I would have thought.
Companies are always very quick to come up with very suspect reasons why they should charge consumers one price in one country and another one in its neighboring countries (before local taxes)
As somebody quite rightly points out, France has a sales tax of 19.6%.
Since GB has a sales tax of 17.5%, this should make iTunes music cheaper in England, not more expensive.
German sales tax is at 16%, but they are charged the same as the French.
Clearly you have not a hope in h*** to argue along those lines.
The Europen car industry is famous for charging diffrent prices in different countries. In fact, Volkswagen has been fined several hundred million dollars in the past for preventing Germans buying VW at lower prices in Italy.
Apple has independent operations in each country last I knew of it with European Headquarters in Germany (last I knew) and currency exchange cost is no more part of the picture than in the US.
Goods are shipped directly from the manufacturers in Taiwan or god knows where, just in the US.
Do you really believe that come year end, Apple UK, Apple France and Apple Germany go to the bank and say, please change all these Pounds/Euros we made into Dollars so we can send them off to our great almighty big daddy in the US?
Bollocks they do. They run their own business and set their own prices.

apple mars: You are talking out of your a**.

Bottom line is: Nearly everything in GB is more or much more expensive than in the rest of Europe and most tgings don't work as they should.
BUT: Despite the weather, it is still the jolly funnest place I have lived in Europe. Can't beat the people... (well o.k., Italy comes close, but they have Berlusconi, south of France is nice, too but then again still France, Germany is just so bloody time-warpy or trying too hard, mind you, good food in Bavaria and the best beer...)

njahnke
Fresh-Faced Recruit

Joined: Jan 2003

0

09/15, 08:01pm | report spam | close Reply |
lol

time warpy indeed. and it sounds like apple uk may be in a wee bit of trouble.

henryblackman
Fresh-Faced Recruit

Joined: Feb 2003

0

09/16, 06:03am | report spam | close Reply |
VAT issue

VAT isn't the issue here. VAT is charged at the same price no matter what store you buy from: iTunes is based in Luxembourg to take advantage of the fact that the pay the local sales tax from the country of purchase: Luxembourg has the lowest VAT in the EU. The useful decision from Apple.

The prices are different, because the record companies demand differing cuts in different countries.

Also, if the prices were to follow exchange rates, the prices would change daily - which everyone would complain about also. The dollar is VERY weak at the moment, which means things cheaper in Europe if imported, but if the dollar regained strength (unlikely in the short term) the costs would equal out somewhat.

The CA are going after Apple like they go after Virgin Megastores and HMV - they are the main music sellers and as such can exhert some pressure on the recording industry. I doubt Apple has that much pull, as it accounts for only a small part of the music sales in Europe anyway.

JTVD
Fresh-Faced Recruit

Joined: Apr 2001

0

09/17, 07:45am | report spam | close Reply |
lol

German mullet hair or what!

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Apple's iTunes accused of overcharging UK customers

updated 09:45 am EDT, Wed September 15, 2004

Apple iTunes UK under fire

Blame the Rec.Industry!

Don't stop there!

Well, it's true.

Stupid american here

You are too stupid...

UK

They are right...

Sales tax

Re: UK

Re: UK

General taxe on income

Sales Tax?

Let's make a Deal

Hmmm

UK

lol

VAT issue

lol

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Apple's iTunes accused of overcharging UK customers

updated 09:45 am EDT, Wed September 15, 2004

Apple iTunes UK under fire

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Blame the Rec.Industry!

Don't stop there!

Well, it's true.

Stupid american here

You are too stupid...

UK

They are right...

Sales tax

Re: UK

Re: UK

General taxe on income

Sales Tax?

Let's make a Deal

Hmmm

UK

lol

VAT issue

lol

Login Here

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Connect tools:

Subscribe

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on Twitter

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