14 DAY TRIAL // While last week, the EU sent Apple and the major record companies formal charges, a recent statement clarifies the light in which Apple is viewed.
While the iTunes Store does indeed prohibit the user from buying songs from other countries where they may be cheaper, which is a breach of the common European market, the European Commission understands that Apple had little choice in the matter. "Our current view is that this is an arrangement which is imposed on Apple by the major record companies and we do not see a justification for it," Commission spokesman Jonathan Todd told reporters.
While Apple's iTunes Store may be breaking the law, the real focus is on the four major labels, Vivendi's Universal Music Group, Sony BMG Music Entertainment, EMI Group and Warner Music Group. "Apple are the managers of the iTunes store. It's true that the focus is the major record companies," Todd said.
So far, the reactions of the labels have varied. Universal Music stated it was "completely satisfied that we have complied with all applicable laws and will respond in due course on the issues raised in the document." EMI said it will be co-operating fully with the Commission, adding: "We do not believe we have breached European competition law, and we will be making that case strongly." Warner had no comment and Sony-BMG was unavailable for comment.
The four companies have until early June to respond to the Commission.
The issues underlying the problem here are the contracts that bind artists and labels and the ones that in turn bind music resellers and the labels. The current model is old and obviously outdated in the face of digital music and Internet distribution, and changing it is likely to have major implications worldwide.