Apple

European Commission Antitrust Hearing Soon

Hearings are scheduled for the end of the month...

By Victor Mihailescu, Apple News Editor

10th of September 2007, 11:48 GMT

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Although Apple continues to operate its multiple iTunes Stores in European countries, this arrangement with the music labels might soon come to an end. Both Apple and the major labels have been scheduled to attend a meeting with the European Commission over iTunes pricing and content

concerns.

Back in April, The European Commission accused Apple and major labels EMI, Warner, Universal and Sony BMG of engaging in unfair pricing for online sales. The core issue is that European customers are charged differently for the same iTunes content, depending on the country they live in and that not all content is available everywhere. While it is not illegal to have such price variances, Apple and the music labels are preventing customers from shopping in any country but their own, the E.U. being a free trade zone.
The Commission has set the date for antitrust hearings into unfair pricing practices for online music sales through iTunes for 19th and 20th September.

All of the companies named will appear at the European Commission hearing, with the exception of Warner. Should the regulators find evidence of antitrust violation, it can fine the companies involved up to 10 per cent of their annual global revenue.
Apple has repeatedly stated that its intention had always been to create a single European store, with a single price, but was not allowed to do so by the labels.
Although Apple is named alongside the Major labels, it has previously been made clear that while the company is involved in this by owning and operating the iTunes Store, it is clear that the current situation was not reached because of Apple's will but rather because of the rules imposed on it by the labels.

If anything, this could end up being beneficial for Apple if the Commission forces the labels into allowing a single European iTunes Store.

TAGS:

Apple | iTunes

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