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European Commission to rule on iTunes UK pricing

updated 08:15 am EST, Fri December 3, 2004

iTunes UK pricing


The Office of Fair Trading (OFT) has referred a complaint over Apple's iTunes high prices in the UK to the European Commission because it says that the commission is better positioned to rule on the matter, according to the BBC. The move follows a complaint by Which? (formerly the Consumer Association) that claimed that than those in France and Germany and that UK customers were unfairly barred from logging on to the French and German sites. Last September, Apple defended the pricing disparity saying that it used the underlying economic model in each country to determine pricing and pointed to the difference in price of CDs in the US and UK as an example. Apple also said that iTunes pricing should be compared with similar services offered in the UK.


by MacNN Staff

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 industry, digital music/video

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  1. njfuzzy

    Fresh-Faced Recruit

    Joined: Apr 2001

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    12/03, 08:51am | report spam | Reply |

    Blame the labels

    The answer is simple. Apple should countersue the labels. The simply fact is that iTunes UK charges more because the UK labels charge more, and Apple passes that along. This is the decision of the supplier, not the vendor, and as such Apple should not be held liable.

  1. iceberg

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    Joined: Nov 2004

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    12/03, 09:52am | report spam | Reply |

    Free-Market

    Those who are unhappy with Apple's pricing structure are at liberty to refrain from buying music thru the Apple iTunes Music Store, and I'm sure that there are plenty of alternatives.

    But there is absolutely no justification for government to coerce Apple into any sort of business practice. You couldn't force your neighbor into selling you something at a certain price, why does the government have that ability? In truth, it doesn't and it's a despicable practice which should be abolished.

  1. spacefreak

    Addicted to MacNN

    Joined: Feb 2002

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    12/03, 10:10am | report spam | Reply |

    RE: Free Market

    All one has to do is imagine the above post, then substitute the word "Microsoft" for "Apple".

    I guarantee you that opinions here would be strikingly different in tone if it were MS involved.

    When Apple opens up FairPlay (and allows other music services' music on the iPod), then we can talk about free-market, buddy. Until then, Apple is absolutely engaging in monopolistic practices.

  1. iceberg

    Fresh-Faced Recruit

    Joined: Nov 2004

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    12/03, 11:23am | report spam | Reply |

    Re: MS

    I guarantee you that my opinions would not strike a different tone regarding MS. As to MS, I am indifferent of their market force, and how it uses it's clout to obtain it's means. The survival of MS is dependent on me and you the consumer, and it's ultimate purpose is to profit from our choice to continue purchasing their products.

    As long as MS serves the public consumers what they want, they will grow stronger, but only to serve the greater good with even better products. Only when interventionists as yourself think that you know better than everyone else, and worse yet, you will use the government's monopoly of force to "foster competition" to MS's dominant operating system, we all lose.

    Microsoft isn't as bad as you think it is. Even though I perfer and use Apple's hardware and software products, even you would have to admit that the office suite for mac 2004 is one h*** of a great product.

    Apple doesn't have to "open" fairplay, any more than you have to open your home to me or anyone else. And to accuse Apple of being a monopolist, as if it were a bad thing!

    1. Apple isn't the only company selling mp3 hardware.

    2. Apple isn't the only company selling music online.

    3. Spacefreak controls 100% of his labor. Can a company hiring you accuse you of being a monopolist of spacefreak's labor?

    Hence, instead of throwing around the word "monopoly" as a red herring, I suggest you first study economic functions, and how monopoly's can actually be a good thing.

  1. urapns

    Fresh-Faced Recruit

    Joined: Feb 2003

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    12/03, 11:32am | report spam | Reply |

    Free Market

    Forget iTunes Music Store...just compare the cost of cars in UK versus the rest of EU......talk about getting screwed....

  1. FireWire

    Mac Elite

    Joined: Oct 1999

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    12/03, 12:32pm | report spam | Reply |

    new legal target

    seems that people got tired (or ruined) of suing Microsoft, so they choose Apple instead. Is it me or Apple is getting more legal trouble than it deserves? from the BBB because of the "world fastest" claim and now the pricing around the world. to my knowledge nobody sued MS when they published their reasons why Windows was better than Linux, including something about "better security, lower cost"...

    seriously, I live in Canada and most computer parts are cheaper online in the US, so guess what? that's what I do! i don't complain to my country in hope they would force MyPreferredCompany™ to sell it at a better price.. people these days.. :-)

  1. iceberg

    Fresh-Faced Recruit

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    12/03, 01:59pm | report spam | Reply |

    Re: Firewire & Canada

    Oh Blame Canada!

    Canada is part of the reason why drug costs are skyrocketing in the US. After all, the US-based companies can't profit at the rate they and the market would easily decide in Canada, so they are forced to do it elsewhere. If the US would adopt such a system, it would mean the end of the modern pharmecuetical industry, which depends on those profits to be plowed back into R&D of the future life-saving drugs, and clinical trials for pending drugs.

    But to some smiling Canadian politician, he made some grannie's drug costs lower, while her children won't have better drugs when they get elderly.

  1. Mediaman_12

    Professional Poster

    Joined: Jan 2001

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    12/03, 03:27pm | report spam | Reply |

    EU rules

    "You couldn't force your neighbor into selling you something at a certain price, why does the government have that ability"

    It's because Apple has set up iTMS's for each EU state and bars users from accessing foreign stores. It's called EU free trade.
    Ford can't stop me from going to Holland and buying a UK spec car (for the lower price that they charge over there), they tried this and got bashed by the EU.
    Everybody in the EU should be able to access any European iTMS they like, Do apple have a different pricing structure for users in NY to ones in Cali, no. It's supposed to be the same over here.

  1. iceberg

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    Joined: Nov 2004

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    12/03, 03:37pm | report spam | Reply |

    Re: Mediaman

    Just as you have the right to charge your neighbor Jack double what you would charge your other neighbor Mike, so to Apple has the right to set the price as they see fit, or to even refuse you the sale.

  1. Clive

    Mac Enthusiast

    Joined: Jan 2001

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    12/03, 05:24pm | report spam | Reply |

    Some research please!

    But there is absolutely no justification for government to coerce Apple

    Please people, at least try to get the facts right (and this fact was pointed out when Apple launched iTunes in the EU, so there's no surprise).

    There is a justification for this, it's called the Treaty of the European Union. Governments write laws to comply with it, and companies that trade in the EU are bound by it. The simple mater here is that the EU is an open market, and that is regulated by law. Apple can set whatever prices they like in any EU state - but they cannot prevent any EU citizen from buying in any EU state that they choose to. So, Apple's policy of banning sales to other EU states via the German or French iTunes stores is illegal.

    Apple has the right to set the price as they see fit,

    It's not illegal for Apple to charge more in the UK, but it is illegal for them to prevent UK or any other EU citizens from buying from the cheapest place within the EU.

    This applies to cars too, for instance, you can go to a Mercedes dealer in Belgium and demand a new right hand drive car, the manufacturer is obliged to provide it.

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