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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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Comments

  1. Marook

    Joined: Dec 1969

    0

    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!

  1. Putta

    Joined: Dec 1969

    0

    Don't stop there!

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

  1. haunebu

    Joined: Dec 1969

    0

    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.

  1. testudo

    Joined: Dec 1969

    0

    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?

  1. Nitride

    Joined: Dec 1969

    0

    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!

  1. David R

    Joined: Dec 1969

    0

    UK

    Maybe the UK should start using Euros like everyone else.

  1. henryblackman

    Joined: Dec 1969

    0

    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.

  1. John F.

    Joined: Dec 1969

    0

    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.

  1. Roehlstation

    Joined: Dec 1969

    0

    Re: UK

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

  1. JohnnyFive

    Joined: Dec 1969

    0

    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!

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