Apple To Cut Music Prices Following EU Probe

Technology giant Apple has today announced that it is to reduce the cost of music downloads from its iTunes service in the UK to meet its pricing policy elsewhere in Europe, following investigations into its strategy by European Union regulators after it was discovered that it was charging more to customers in the UK than those within the Eurozone.

Apple’s highly successful iTunes business, which retails mp3 format music online has been criticised for charging 79p per track to UK users but only 99 euro cents (or 74p) to those customers located in the Eurozone, creating inequity between EU nationals which is prohibited by community law.

Under EU regulations, it is generally unacceptable to discriminate between nationals of different member states, which is alleged to have taken place in this instance with residents within the Eurozone getting a better deal than their UK counterparts, for no obvious or justifiable reason.

Hence the policy change was prompted by initial investigations from within the EU authorities following a complaint by consumer group Which? back in 2004 over the apparent inequity between pricing strategies.

The company has said that it will look to gradually reduce the price of its music over the next six months in the UK in order to bring it to a par with the rest of Europe to avoid further action by the authorities and consumers from the UK.

As a knock-on move, Apple is clamping down on music suppliers within the UK that don’t come down to the EU pricing level over the course of the next six months in order to facilitate its price realignment, suggesting it will not be willing to continue its relationships with those unwilling to provide equity in pricing.

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