p2pnet - rss feed: EU goes after Apple, major labels
p2pnet.net news:- Apple has been formally charged by the European Union with restricting music sales in Europe. And with it in the virtual dock are, probably, EMI (Britain), Vivendi Universal (France), Sony BMG (Japan and Germany) and Warner Music (US), the members of the Big 4 music cartel.
We say “probably” because Reuters, which reports the development, says, “The European Commission said it has sent a Statement of Objections in the past week to Apple and unidentified major record companies.”
However, it also names “the world’s four major record companies” as EMI, et al.
“European Commission spokesman said agreements between Apple and the record companies violate the European Union’s rules that prohibit restrictive business practices,” says the story.
“Consumers can only buy music from the iTunes online stores in their country of residence and are therefore restricted in their choice of where to buy music, and consequently what music is available and at what price,” it has Jonathan Todd, European Commission spokesman, saying.
And once again Apple is blaming the Big 4 for its troubles.
“Apple said it wanted to offer a pan-European store but was hemmed in by the music companies’ demands,” states Reuters.
Yesterday came the news that Apple and EMI have struck a deal under which EMI will drop its DRM (Digital Restrictions Management) consumer control mechanisms and Apple will sell the results, including music files of a higher quality than at present, but at a significant price increase, sans its own so-called FairPlay DRM.
“Much of the concern over DRM systems has arisen in European countries,” said Apple boss Steve Jobs in February. “Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free. For Europeans, two and a half of the big four music companies are located right in their backyard. The largest, Universal, is 100% owned by Vivendi, a French company. EMI is a British company, and Sony BMG is 50% owned by Bertelsmann, a German company. Convincing them to license their music to Apple and others DRM-free will create a truly interoperable music marketplace. Apple will embrace this wholeheartedly.”
In 2005 British consumer advocacy group Which? said in the UK, iTunes songs went for 79 pence, or about $1.45, against the .99 euros (about $1.25) charged elsewhere in the European Union.
But, “There is no justification of this because the product is virtual,” said Alena Kozakova, Which? principal economist. “The traditional way of justifying this is that property and wages are more expensive in Britain and therefore products should be as well. But because this product is virtual this cannot apply.”
The EU move is, “unrelated to a deal announced on Monday, under which EMI agreed to make its music available online without anti-piracy protection, becoming the first major music group to take the risk in a bid to increase digital sales,” says Reuters, adding DRM, “makes Apple downloads generally incompatible with MP3 downloads from competing formats,” says the story.
Also See:
Reuters - EU charges record companies, Apple on record sales, April 2, 2007
FairPlay DRM - Steve Jobs’ DRM master-stroke, April 2, 2007
concern over DRM - Thoughts on Steve Jobs’ Thoughts, February 8, 2007
iTunes songs - Apple DRM problems grow, June 12, 2006
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