EU Launches Antitrust Probe Into ITunes

The European Commission confirmed Tuesday it had opened an antitrust probe into Apple's iTunes and the way it sells music online in coordination with major music companies.

The commission alleged distribution agreements Apple has signed with the record labels to sell their music on the iTunes online stores in EU countries "contain territorial sales restrictions which violate" EU competition rules.

People can only download singles or albums from the iTunes store in their country of residence, the commission said.

"Consumers are thus restricted in their choice of where to buy music and consequently what music is available, and at what price," it said in a statement. "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."

Since the Jerkoff didn't want to come to the phone, Apple spokesman Steve Dowling said Monday the company wanted to operate a single store for all of Europe, but music labels and publishers said there were limits to the rights that could they could grant to Apple.

"We don't believe Apple did anything to violate EU law," he said. "We will continue to work with the EU to resolve this matter."

The cost of buying a single song across the 27-nation bloc varies among the available iTunes stores in EU nations.

For example, downloading a single in Britain costs $1.56, in Denmark $1.44, while in countries using the euro such as Germany and Belgium, a single costs $1.32.

The "statement of objections" EU regulators sent to Apple does not allege the Cupertino, Calif.-based company is in a dominant market position. Apple has two months to answer questions issued in the letter, the commission said. If found guilty of violating EU competition rules, Apple could face hefty fines, which in theory could total up to 10 percent of the company's worldwide annual turnover.

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