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| Version 1 | Version 2 |
|---|---|
| Apple to cut UK download prices | Apple to cut UK download prices |
| (41 minutes later) | |
| Apple has announced that it will cut the price it charges for music downloads in the UK from its iTunes music store within the next six months. | Apple has announced that it will cut the price it charges for music downloads in the UK from its iTunes music store within the next six months. |
| The cut will bring the UK into line with the charges in the rest of Europe. | The cut will bring the UK into line with the charges in the rest of Europe. |
| Apple currently charges 79 pence per download in the UK, compared with 99 euro cents (74p) in the rest of Europe. | Apple currently charges 79 pence per download in the UK, compared with 99 euro cents (74p) in the rest of Europe. |
| European Union regulators began investigating iTunes last year after the consumer group Which? complained about its pricing policies. | |
| Apple is now taking action against record labels that charge more to distribute music in the UK than in the rest of Europe. | Apple is now taking action against record labels that charge more to distribute music in the UK than in the rest of Europe. |
| We hope other internet companies will follow Apple's lead and match UK prices to prices in continental Europe Chris Warner, Which? lawyer | |
| "Apple will reconsider its continuing 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," the company said in a statement. | "Apple will reconsider its continuing 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," the company said in a statement. |
| Competition rules | Competition rules |
| EU Competition Commissioner Neelie Kroes welcomed the move. | EU Competition Commissioner Neelie Kroes welcomed the move. |
| She said it would "allow consumers to benefit from a truly single market for music downloads". | She said it would "allow consumers to benefit from a truly single market for music downloads". |
| The EU was investigating whether the iTunes store violated its competition rules because each country had its own store and consumers were only allowed to download music if they have a credit card from a bank registered in that country. | The EU was investigating whether the iTunes store violated its competition rules because each country had its own store and consumers were only allowed to download music if they have a credit card from a bank registered in that country. |
| Apple said it could not have a single European iTunes store because of copyright restrictions put in place by the record labels. | Apple said it could not have a single European iTunes store because of copyright restrictions put in place by the record labels. |
| Which? originally lodged its complaint with the EU in 2004. | Which? originally lodged its complaint with the EU in 2004. |
| "We hope other internet companies, including online music companies, will follow Apple's lead and match UK prices to prices in continental Europe," said Which? lawyer Chris Warner. | |
| Download competition | |
| European downloads are still significantly more expensive than those in the US where they cost 99 cents (50p). | |
| Apple is currently locked in a competitive battle with other music download stores. | |
| The big issue in music downloading is Digital Rights Management (DRM) software, which prevents tracks being copied to multiple digital devices and burned onto compact discs. | |
| Some tracks on iTunes are available without DRM, but most are not. | |
| Amazon's digital music store, in contrast, only sells tracks that do not have digital protection. | |
| Sony BMG recently launched a website in the US called MusicPass, which allows consumers who buy pre-paid cards to download tracks without DRM. |