Apple to standardize iTunes music prices across Europe

[AppleInsider]

Apple said Wednesday that within six months it will lower the prices it charges for music on its UK iTunes Store to match the already standardized pricing on its other European iTunes Stores.

The move will see British iTunes customers charged the same rates for digital music downloads as those customers located in Austria, Belgium, Denmark, Germany, Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland and Spain.

As a result of its concessions, Apple said it will be forced to pay some record labels more to distribute their music in the UK than it pays them to distribute the same music elsewhere in Europe.

“This is an important step towards a pan-European marketplace for music,” said Apple chief executive Steve Jobs. “We hope every major record label will take a pan-European view of pricing.”

Back in April, the European Commission formally charged Apple and the four major record labels with anti-competitive practices in the deals that form the backbone of European iTunes stores.

Specifically, the commission argued that shoppers are often forced to buy only from their home store, preventing them from earning the best rate. This is particularly the case for British shoppers, the regulators explained, as the 79p song downloads were the most expensive across the European region.

The commission welcomed Apple's announcement Wednesday to equalise prices, saying it now considers the case closed and no further action will be taken.

"The Commission is very much in favour of solutions which allow consumers to benefit from a truly Single Market for music downloads," said European Competition Commissioner Neelie Kroes.

In a statement, the commission added that its has been able to clarify that there is no agreement between Apple and the major record companies regarding how the iTunes store is organised in Europe. Rather, the structure of the iTunes store is chosen by Apple to take into account the country-specific aspects of copyright laws.

"The Commission is very much in favour of solutions which would allow consumers to buy off the iTunes' online store without restrictions," the the statement said, "but it is aware that some record companies, publishers and collecting societies still apply licensing practices which can make it difficult for iTunes to operate stores accessible for a European consumer anywhere in the EU."

In its own statement, Apple said it would reconsider its relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months.

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[Messiah]

Yeah, you got caught fleecing your UK customers. At least Dick Turpin wore a mask!

So how's about a refund or an iTunes credit for the stuff we've already bought?

On a more positive note, this has to be the first time I've felt as though there was any benefit for Scotland being in the EU...

[heffeque]

Apple also sells in Portugal too now.

[monstrosity]

As someone who once owned a record label in the UK, and knowing how damned expensive it is to live here, I would be pretty pissed off with apple if they said this to me..
"In its own statement, Apple said it would reconsider its relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months."

I personally wish the UK never joined the EU in the first place, but thats another subject

[T'hain Esh Kelch]

Hopefully this won't turn out, so that everyone pays GB's prices..

[Mr. H]

Originally Posted by AppleInsider

The commission welcomed Apple's announcement Wednesday to equalise prices, saying it now considers the case closed and no further action will be taken.

If this is also the end of their investigations into the record labels' practices, then this is very disappointing.

The problem wasn't just with price (and actually, with the recent strengthening of the Euro, the price disparity isn't that great any more - just a few pence), but the fact that there is no pan-european iTunes store (or any other download store). Europe is meant to be a single market, but with the music business it clearly is not.

[heffeque]

Originally Posted by monstrosity

I personally wish the UK never joined the EU in the first place, but thats another subject

Do you even know what the EU was created for? People seems to forget their history lessons too fast.

Originally Posted by Mr. H

Europe is meant to be a single market, but with the music business it clearly is not.

Sadly the music industry seems to be above the law all over the world :-/

[Strawberry]

So how much less than £0.79 would a track be?

[digitalclips]

Again here is a case where Apple was and still is seen as the culprit and in fact wasn't. Apple is eating the difference now for a while and if the labels don't lower the price in the UK what else can Apple do but drop them? If they don't want to be on iTunes they are free to go elsewhere.

[monstrosity]

Originally Posted by heffeque

Do you even know what the EU was created for? People seems to forget their history lessons too fast.

I'm convinced they created it to get get on my nerves, but I could be wrong.

[teckstud]

Maybe this will help sell more iPhones in UK.

[monstrosity]

Hang on, I know, they created it so that we could eat strait bananas?

[heffeque]

Originally Posted by monstrosity

I'm convinced they created it to get get on my nerves, but I could be wrong.

So Hitler must have been such a unimportant thing for you then... your grandad probably didn't care about it either I suppose.

Originally Posted by monstrosity

Hang on, I know, they created it so that we could eat strait bananas?

What are you? Five?

[digitalclips]

Originally Posted by Messiah

Yeah, you got caught fleecing your UK customers. At least Dick Turpin wore a mask!

So how's about a refund or an iTunes credit for the stuff we've already bought?

I'd hope the companies that demanded Apple charged these higher prices in UK, who now have six months to lower them or leave iTunes, will offer a rebate via Apple. I hardly see it as being Apple's problem. Apple is funding the lower rates for six months. That is Apple already helping to address the problem financially and in a huge way.

[Mr. H]

Originally Posted by Strawberry

So how much less than £0.79 would a track be?

At the latest exchange rate, a massive 5p!

[doemel]

Originally Posted by monstrosity

As someone who once owned a record label in the UK, and knowing how damned expensive it is to live here, I would be pretty pissed off with apple if they said this to me..

You think the UK is the only expensive place in Europe? You've probably not even looked beyond your own backyard.

[Elijahg]

Originally Posted by heffeque

So Hitler must have been such a unimportant thing for you then... your grandad probably didn't care about it either I suppose.


What are you? Five?

Coming from someone who lives in Spain, you have nothing to complain about being in the EU. Your country receives billions of euros from the EU, why should you complain? Great Britain gives billions to the EU and receives nothing... Apart from immigrants.

Anyway. Having similar pricing to the rest of Europe is ok, but as Apple have said, they are making less profit because the labels charge much more in the UK... The EU needs to make the labels have pan-euro pricing, but as usual they only look at the surface of the problem.

Originally Posted by doemel

You think the UK is the only expensive place in Europe? You've probably not even looked beyond your own backyard.

England is the MOST expensive place in Europe. BBC News

[heffeque]

I'm living in Slovenia now, but my nationality is from the US :-) Spain is receiving a lot of inmigrants too and has its own problems too. Stop staring at your belly bottom.

[Elijahg]

Spain is many times the size of GB, and receives less immigrants.

[Bageljoey]

Originally Posted by heffeque

So Hitler must have been such a unimportant thing for you then... your grandad probably didn't care about it either I suppose.

So the EU was created to stop the rise of Hitler-like leaders within its borders?

It had nothing to do with economics?
Or consolidating a global political presence?

You can argue that the EU was an important step and a universal good, but to assume that the only people who would debate the decision are idiots or fascists is kinda lame.

[monstrosity]

Originally Posted by heffeque

So Hitler must have been such a unimportant thing for you then... your grandad probably didn't care about it either I suppose.

You need to move on, Hitler was so yesterdays news.

The modern EU would seem to be obsessed by centralized control of it's member states, and this is what I oppose. And although this utopia sounds initially a great concept, i do not want to be controlled with 'yesterdays' social, political, and economic policies, give me a call when europe steps out of the 70's.


PS: I do not include all of EU in my scathing generalizations, just most of it.

[monstrosity]

Originally Posted by doemel

You think the UK is the only expensive place in Europe? You've probably not even looked beyond your own backyard.

no i did not sat that did I. I know full well that scandinavia and brussels are exceptionally expensive, but they are small countries in comparison. UK is more expensive than the majority of europe/world.

[kerryb]

The UK uses the Pound Sterling, Sweden uses the Kronor, Italy, France and Germany use the Euro, are CDs price exactly the same in all of these places? The UK has the strongest currency in the world right now, the Dollar is at an all time low, I'm not sure how this all works but I doubt Apple is the problem here.

[ascii]

Originally Posted by heffeque

So Hitler must have been such a unimportant thing for you then... your grandad probably didn't care about it either I suppose.

The relationship between the EU and Hitler is that a lot of English people died so they could have democracy instead of being dictated to by Hitler, and now they are dictated to by the unelected EU.

[doemel]

Originally Posted by monstrosity

UK is more expensive than the majority of [the] world.

And so is the rest of Western Europe. So what?

[melgross]

Originally Posted by Mr. H

If this is also the end of their investigations into the record labels' practices, then this is very disappointing.

The problem wasn't just with price (and actually, with the recent strengthening of the Euro, the price disparity isn't that great any more - just a few pence), but the fact that there is no pan-european iTunes store (or any other download store). Europe is meant to be a single market, but with the music business it clearly is not.

This EU thing has never really worked out the way they hoped it would. National interests are still too strongly desired, demanded, and enforced. The EU commissions are weak. Often they are ignored. The bigger countries do this with impunity constantly.

The WSJ had a small article today about why the suit went nowhere. In it was said:

None of the companies are expected to be fined, as the commission, the Europeans Union's executive arm, couldn't build a case against the companies under its cartel legislation, these people said.

[Moukkis]

Come on everyone !

The history of European political economy: different forum, please.

Being a UK resident, I am happy to see prices go down, as any consumer would be. Nice precedent. I still at times tease myself with the idea of what one pays for a mac over here and what one pays in the US.

Now, eyes on the Macworld. I hope Santa Jobs brings us something nice.

[melgross]

Originally Posted by Bageljoey

So the EU was created to stop the rise of Hitler-like leaders within its borders?

It had nothing to do with economics?
Or consolidating a global political presence?

You can argue that the EU was an important step and a universal good, but to assume that the only people who would debate the decision are idiots or fascists is kinda lame.

One of the major reasons for its creation was to bring Germany within a common framework, and to prevent more French German wars, which would then bring everyone else into the conflict.

Count how many times Germany and France fought throughout both the 19th and 20th centuries.

[monstrosity]

Originally Posted by doemel

And so is the rest of Western Europe. So what?

Your right, it has nothing much to do with the rest of the WORLD in regards to the topic of conversation. I mentioned 'World' as a mere side note. But if you had quoted me properly (without alteration), and read through the preceding posts the point of me mentioning that 'UK is more expensive than the majority of EUROPE" is fairly obvious.

It was in reply to you saying "You think the UK is the only expensive place in Europe?" which I never said nor think. But I do KNOW the UK is more expensive to live in than the VAST majority of Europe.
And i know that it would annoy me as the owner of a record label.
I also know that it is detrimental to british business.
But I also know it's great for consumers (in the short term, until consumers run out of money because the company they work for cant set it's own prices to reflect the cost of living of the country it resides in).

However I'm sure spain will do fine from all this.

Now can we just leave this topic alone.

PS: i win

[irnchriz]

The UK is the third most expensive country in the World to live in.
http://www.guardian.co.uk/money/2008...rc=rss&feed=11

Basically, we Brits are a bunch of sheep and think that we are great then we get shafted financially by everyone.

Music, movies, cars, even food!!

[Elijahg]

Originally Posted by irnchriz

The UK is the third most expensive country in the World to live in.
http://www.guardian.co.uk/money/2008...rc=rss&feed=11

Basically, we Brits are a bunch of sheep and think that we are great then we get shafted financially by everyone.

Music, movies, cars, even food!!

Haha exactly right.

[rhowarth]

Originally Posted by irnchriz

The UK is the third most expensive country in the World to live in.
http://www.guardian.co.uk/money/2008...rc=rss&feed=11

Basically, we Brits are a bunch of sheep and think that we are great then we get shafted financially by everyone.

Music, movies, cars, even food!!

Yeah, but by and large we're also some of the most highly paid people in the world, so it all kind of balances out :-)

[Ronbo]

Originally Posted by monstrosity

As someone who once owned a record label in the UK, and knowing how damned expensive it is to live here, I would be pretty pissed off with apple if they said this to me..
"In its own statement, Apple said it would reconsider its relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months."

I personally wish the UK never joined the EU in the first place, but thats another subject

Not to re-ignite the flame war above, but I'm curious. Why would you be mad at Apple? I understand there's a lot of animosity in Britain about the EU (which isn't to say I entirely understand the animosity itself, since I don't live there, but I have watched a lot of "Yes, Minister" and surely I get partial credit for that! )

Apple didn't start out saying this, remember. As nearly as I could see from far-off Texas, it seemed as though Apple had initially tried to run its music store in Europe, found things too disunified to have just the one store, and then set up a necessarily fragmented store, passing on its costs of doing business to the consumer. If in addition to this, as some of the other posters have said, Apple was actually eating some of those disparities, that seems quite laudible on Apple's part.

Once the EU demanded uniform pricing, what would your suggestion have been for a fairer response from Apple?

[frenchseb]

Originally Posted by monstrosity

I personally wish the UK never joined the EU in the first place, but thats another subject

I personally wish the UK was never allowed to join the EU in the first place, we would have a totally integrated federal state without those idiots almost moaning about the so called undemocratic Europe. They always prevent the Union from progressing and afterwards they complain that it does not work.
Just ask your friend Bush to let you in the United States and I am sure you will be a happier nation and so would Europe.

[Elijahg]

Originally Posted by frenchseb

I personally wish the UK was never allowed to join the EU in the first place, we would have a totally integrated federal state without those idiots almost moaning about the so called undemocratic Europe. They always prevent the Union from progressing and afterwards they complain that it does not work.
Just ask your friend Bush to let you in the United States and I am sure you will be a happier nation and so would Europe.

Personally I have always though joining the USA would be a great idea. They have their country's interests in the core of their government, whereas the UK government has interests everywhere except the UK. The EU just saps money from Brits too.

[melgross]

Originally Posted by frenchseb

I personally wish the UK was never allowed to join the EU in the first place, we would have a totally integrated federal state without those idiots almost moaning about the so called undemocratic Europe. They always prevent the Union from progressing and afterwards they complain that it does not work.
Just ask your friend Bush to let you in the United States and I am sure you will be a happier nation and so would Europe.

You wouldn't have an integrated state either way. The EU is such a jumble of disconnected interests, I'm not sure you will ever be able to sort it out.

The nation state has not died out.

But we would GLADLY give you Bush. But you have to take Chaney as well.

[melgross]

Originally Posted by Elijahg

Personally I have always though joining the USA would be a great idea. They have their country's interests in the core of their government, whereas the UK government has interests everywhere except the UK. The EU just saps money from Brits too.

I know Canadians who say that.

[Mr. H]

The relationship between the EU and Hitler is that a lot of English people died so they could have democracy instead of being dictated to by Hitler, and now they are dictated to by the unelected EU.

Amazing how quickly this thread devolved into a Daily Mail Readers rant.

Actually, there are elections for European MPs and of course you get to cast your vote in national elections, whereby the winning party decides how to behave towards Europe. If enough people voted UKIP and the like the main parties would have to take notice, but it would seem that most people just don't really care.

There are plenty of things not to like about the EU (too much bureaucracy), plenty of myths about the EU (e.g. there's no such thing as the "straight banana" directive), and plenty of good that the EU has done (e.g. RoHS, WEEE).

[jfanning]

Originally Posted by T'hain Esh Kelch

Hopefully this won't turn out, so that everyone pays GB's prices..

That may not be a bad thing, the rest of Apples products are actually cheaper in the UK than they are in other European countries

[digitalclips]

Originally Posted by frenchseb

I personally wish the UK was never allowed to join the EU in the first place, we would have a totally integrated federal state without those idiots almost moaning about the so called undemocratic Europe. They always prevent the Union from progressing and afterwards they complain that it does not work.
Just ask your friend Bush to let you in the United States and I am sure you will be a happier nation and so would Europe.

So I guess you wish your French forefathers hadn't been quite so involved in spliting them up in the first place ...