View this article at: http://dev.macnn.com/articles/07/09/17/eu.targets.itunes
Monday, Sep 17, 2007 2:55pm
EU targets iTunes after Mic...
Emboldened by the European Court's rejection of Microsoft's appeal against a 2004 European Commission ruling that declared the company in violation of European anti-trust regulations, the EU is taking square aim at Apple's iTunes according to several reports. Starting this Wednesday, the European Commission will begin holding hearings on the pricing structure of Apple's online store. The basis of the complaint is this: Apple charges different prices to European consumers dependent on their country of purchase. The consequences for a decision against Apple in this matter could be steep: the regulators have the ability to fine companies up to 10% of their global revenue if they are found to be in violation of antitrust law.

The Wall Street Journal reports "So why does the iTunes store charge some Europeans more than others to download a song? In an April WSJ story, Apple blamed the music companies. 'Apple has always wanted to operate a single pan-European iTunes Store accessible by anyone from any member state,' said an Apple spokesman. 'We don’t think Apple did anything to violate EU law.'" Meanwhile, the EU also blames record labels, apparently considering Apple to be more or less a conduit of the record companies' wrongs rather than an active violator. An EU spokesperson said "this is an arrangement imposed on Apple by the record companies [...] The main focus of our attention is the major record companies." In June, the EU said that Apple had only two days to respond to an anti-trust charges alleging that the company restricted online sales of music in Europe. The European Commission originally set a deadline of early June for the response, but granted a two-week extension at the request of Apple and three of the four record companies also implicated; the fourth record company had already submitted a written response to the charges. Apple's response was that it has always wanted to offer a standard pricing structure across Europe, but is unable to do so because of record company policy.