OFT Refers iTunes Price Discrimination Claim To EC

by Robin Pilgrim, LawAndTax-News.com, London

08 December 2004

It emerged last week that the UK's Office of Fair Trading has referred a complaint regarding the pricing of Apple's iTunes music downloading service to the European Commission.

The issue was raised by the Which? consumer magazine, which revealed that UK consumers are charged 20% more per downloaded song than their counterparts in continental Europe.

"UK consumers are getting a raw deal from Apple. The online music market is a huge growth area; the Single Market should work the same in this market as in others," Phil Evans, principal policy adviser for Which? told the Out-Law news service.

In addition to charging UK users of the downloading service more, Apple has also barred them from using the cheaper services.

The OFT announced on Friday that it referred the matter to the EC as the European regulator is "better placed to consider this matter, in particular as Apple iTunes operates in more than three EC member states".

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