p2pnet - rss feed: Apple cuts UK iTune download rates
p2pnet news | Music:- It’s now standard operating procedure for Apple to charge over the top for its products, hoping Macolytes won’t say anything. And if they do, the company sometimes drops its prices, as it did with the introduction of the iPhone.
It’s convinced iPod owners it’s acceptable for them to pay for software necessary to download music files —- but only those pre-approved by Apple.
The software is called iTunes, and the method FairPlay, Apple’s version of DRM (Digital Restrictions Management) consumer control, dubbed CRAP.
To use iTunes, the Apple faithful have to pay $1 or more per download.
The company has been charging British users nearly 10% more for iTunes downloads than French users, resulting in complaints from British consumer advocacy group Which?, and European Commission competition authorities.
The scandal has dragged on for years —- with Apple continuing to rake in the $$$ in the meanwhile but finally, Apple says it’ll level the prices it charges for music downloads in Europe, in return for which complaints against it would be dropped.
But that won’t be for another six months and in the meanwhile, you guessed it ……….
In a statement, Apple says the move will, “match the already standardized pricing on iTunes across Europe in Austria, Belgium, Denmark, Germany, Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland and Spain.”
Says the EC, “The European Commission welcomes Apple’s announcement to equalise prices for downloads of songs from its iTunes online store in Europe within the next six months. This puts an end to the different treatment of UK consumers who currently have to pay higher prices for downloads. The different treatment to UK consumers was a major concern for Which?, a UK consumer protection organisation, who filed a formal complaint with the Commission. The Commission’s antitrust proceedings have also clarified that it is not agreements between Apple and the major record companies which determine how the iTunes store is organised in Europe. Consequently, the Commission does not intend to take further action in this case.”
In 2005 Which? said in the UK, iTunes songs went for 79 pence, then about $1.45, against the .99 euros (then 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.”
Also see:
Associated Press - D.R.M. Or C.R.A.P. Or D.C.E., May 14, 2007
Apple - Apple to Standardize iTunes Music Prices Throughout Europe, January 9, 2008
EC - Antitrust: European Commission welcomes Apple’s announcement to equalise prices for music downloads from iTunes in Europe, January 9, 2008
79 pence - EU goes after Apple, major labels.July 12, 2006
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