EC probe into 'restrictive' iTunes

Just one day after Apple and EMI dumped music copy protection, the European Commission (EC) has launched an investigation into alleged restrictive practices by the iTunes music store.

The EC says it has sent a Statement of Objections to Apple and some unnamed major record labels claioming that they in breach of EC rules by obliging people to buy only from the iTunes store registered in the country they live in.

“Apple operates a series of iTunes online stores in the European Economic Area (EEA) which sell music downloads,” the EC said in a statement.

“The Statement of Objections alleges that distribution agreements between Apple and major record companies contain territorial sales restrictions which violate Article 81of the EC Treaty. iTunes verifies consumers' country of residence through their credit card details. For example, in order to buy a music download from the iTunes' Belgian online store a consumer must use a credit card issued by a bank with an address in Belgium.”

Apple has hit back by claiming it always wanted a pan-European iTunes store but that record labels advised against it.

“Apple has always wanted to operate a single, pan-European iTunes store, accessible by anyone from any member state,” the company claimed in a statement. “But we were advised by the music labels and publishers that there were certain legal limits to the rights they could grant us.”

The accused companies have two months to respond in writing and can defend themselves orally at a hearing a month after that. If found guilty, however, the EC can fine them up to 10 per cent of their annual global turnover.

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