“The European Commission (EC) has confirmed it is looking into allegations that Apple’s iTunes Music Store discriminates against UK consumers by charging them more to download the same song than it charges other European music buyers,” Tony Smith reports for The Register. “Some British iTunes users have slammed the differential pricing as yet another example of ‘rip-off Britain.'”
“Apple’s pricing policy was brought to the EC’s attention in December 2004 by the UK’s Office of Fair Trading (OFT), which was itself made aware of the situation by British consumer group ‘Which?’ In the UK, the iTunes Music Store charges customers 79p (€1.14) to download a single track. The same song costs €0.99 when it’s downloaded from Apple’s other European music shops,” Smith reports. “Apple can, of course, charge what it likes, and while UK consumers might be annoyed at the price differential, there’s little they can do but complain about it. Or go and buy songs from, say, ITMS’ French outlet. However, Apple doesn’t permit them to do so. That’s the real issue,” Smith explains.
Full article here.
Related MacDailyNews articles:
European Commission to probe charge that Apple is ‘ripping off’ UK iTunes Music Store customers – December 03, 2004
UK’s Office of Fair Trading investigates Apple’s iTunes for ‘anti-competitive practices’ – September 15, 2004
Brits complaining about paying too much? Perhaps they should throw their own “tea party?” Wouldn’t that be ironic?
For the sake of discussion, let’s presume Apple has good reason for this pricing. I’d rather with hold judgement and get some facts before everyone jumps in with lots of screaming and yelling. Anyone out there can shead some light on this. Thanks.
with all due respect to the EU and their 3 Euro Big Macs… YAWN!
*sigh.. the headline for the article should just be “We can’t do math in Europe”
A standard €0.99 in other EU stores is unfair too, VAT (sales tax) rates vary from country to country so even though they all pay €0.99 they are actually paying different amounts.
Right, as Tony Smith points out at The Register:
Apple can, of course, charge what it likes, and while UK consumers might be annoyed at the price differential, there’s little they can do but complain about it. Or go and buy songs from, say, ITMS’ French outlet. However, Apple doesn’t permit them to do so.
That’s the real issue: is Apple’s refusal to allow cross-border shopping in contravention of European Union laws enacted to ensure the free movement of goods and services between member states.
The point isn’t that the UK store is more expensive (although that is still annoying, it’s tough titties), it’s that UK users aren’t allowed to buy from the French store, and that breaks EU regulations.
Hello!!!! has anyone considered that the Britisch Music industry is demanding these prices? Apples biggest obstacle for a global iTunes are all the different rights in each country. CDs and DVDs are also more expensive in the UK than in Mainland Europe (generally everything costs more in the UK)
Hywel, does the record industry allow Apple the option of cross-border shopping. that is the important question
RTFA. As the author says, the issue here is not that tracks cost more, with or without the different national rates of VAT/sales tax, in different parts of the EU. It is that the iTunes stores are set up to block a UK resident from buying the same track from another (e.g the French) store. I can use my UK credit card in a physical record shop in France, and in other contexts (such as buying books) I can use it on other French websites. I am also by extension blocked from buying French releases (which I may well be able to buy as “imports” in a physical specialised outlet in the UK).
So I suspect that the EU will rule against the present iTunes structure, to enable EU residents to buy from any outlet and in any EU currency, which will not I suspect upset Apple, but may (RTFA, again) bring the issue of the record industry’s different licensing conditions into the firing line.
The reason for the pricing….is the “digits” 99 sounds better than say 68. It’s just marketing. You know that 99¢ is not the same as it is in British Currency. It brings that to ₤.51. It is not exactly pretty and a terrible marketing number.
Weren’t there separate stores because Apple had to cut separate deals with the record labels of each country? Doesn’t this mean that Apple could not let the UK shoppers buy at the French store even if they wanted to?
I just wish they would hurry up and get a Japan ITMS, even if they charge a little more.
Blame the British themselves for failing to adopt the Euro.
Just more whining from Europe.
Slightly off topic question ahead!!
Forgive my ignorance, hopefully one of the European posters can answer this question: Is the UK actually a full member of the EU now? From what I recall, there was some sort of row a couple of years ago about whether the UK (or parts of it) would adopt the EU Constitution, or something to that effect. Again, forgive me, because my memory is somewhat fuzzy and I haven’t kept up with international politics as I should.
The point is that the music industry currently does not allow such cross-border online-music-shopping. Every EU-country has its different national licensing rights. Some countries don’t even have a iTMS yet.
Apple is the wrong address for this complaint. By the way, what is not more expensive in the UK than on mainland Europe?
Jack A – you’re right, the problem is the record companies, even if their restrictions within the overall European market are about to be found illegal. Apple, no doubt unwillingly and at some cost, had to do it separately, at least for the major markets, to get the cooperation of the labels, or have no stores here at all. But the Jobs approach demands (minimal) cooperation with the industry, so I reckon they did the only thing possible, to get ahead of the field over here as well.
Firstly, let me state that I’m from the UK so I probably have a right to contribute to this debate.
Here are all the things that contribute to this topic…
1) Here in the UK, we are fed an endless stream of stories about “Rip-Off Britain” from products as variable as BMWs to tomatoes. Physical CDs have been a problem for years, so why anyone is surprised that downloadable music follows suit beggars the imagination.
2) However, whilst we like European prices and food, we still appear to fundamentally mistrust Johnny Foreigner. As a result, we stand back from the Euro whilst most of “developed” Europe has rightly or wrongly moved onto a single currency which gives “commerce” a chance to indulge in some non-transparent pricing.
3) The various rights collection bodies around Europe also exploit the fact that the implementation of copyright law is done at the nation-state level as opposed to a single “trading bloc” model. This has led to a dog’s breakfast of copyright law across Europe. For instance, in the UK it is – contrary to popular belief – illegal to “rip” CDs; there is no “fair use” principle, so if you own an iPod you’re probably (99.99999%) breaking the law. The rights societies enjoy monopoly powers in their own territories – so they can say yea or nay to iTMS or other equivalents, hence why iTMS Eire was late opening.
So if you take 1 + 2 + 3, why does it surprise anyone that there is a price differential?
rogozhin,
yes, the UK is a full member of the European union, has been since the 1970s. But they are not part of the Euro Zone, that is they still have their British Pound.
“Apple can, of course, charge what it likes, and while UK consumers might be annoyed at the price differential, there’s little they can do but complain about it. Or go and buy songs from, say, ITMS’ French outlet. However, Apple doesn’t permit them to do so.”
Wrong, wrong, wrong.
It’s the record companies that do not allow Apple to let their consumers do so.
A recording of a song in the UK, is not the same as a recording of the same song in France. They may sound the same, but you are not buying the sound, you are buying the rights to own that song and to listen to it under certain limiting legal guidelines. These legal guidelines differ from country to country, so ergo, you are not buying exactly the same product, and Apple can charge whatever it likes, free from EU litigation.
I suspect that the at the first hearing this will be explained and it will be thrown out – not before all the people involved in the EU waste more of our (UK) money on pointless litigation, whose outcome can be explained by a few Mac-users without a law-degree between us.
I suggest those European morons to sue the European oil company for ripping off people at the pump!!!
Please, please, please listen:
Whether it is the record companies that have put the restrictions on iTMS or not is irrelevant. The point is that doing so contravenes the European regulations.
The European regulations take precedence over a contract between the record companies and Apple. Just like, say, a state law legalising the medicinal use of cannabis would mean diddly squat in California because the Federal law takes precedence.
Understand yet ?
… and i wanna pay $3 for a legit DVD like the Chinese do, instead of $20+.
Hywel:
I’m not saying that European regulations do or do not take precedence over an agreement with between Apple and the recording companies, you are right, they do take precedence.
My point is that this regulation only applies when you are selling the SAME PRODUCT in different Eurozones, and Apple is not selling the same product.
Understand yet?