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Apple iTunes 'overcharging in UK'

Discussion in 'iPhone Forum' started by HMHB, Dec 3, 2004.

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  1. HMHB

    HMHB
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    The Office of Fair Trading has refered the iTunes service to the European Commission on grounds that it overcharges UK customers. Let's hope we get a fair deal out of this.
     
  2. ancientgeek

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    I doubt if anything will be done; it's a complete minefield; the rights owners are charging different prices to Apple in different markets and may have themselves paid different amounts for their rights; the credit card companies make charges for converting between pounds and euros, the pound-euro exchange rate is floating, the VAT rates are different in different countries.

    However, blocking UK card holders from the EU music store could be declared illegal, and that would be nice for the consumer, but not as nice as unblocking ITMS Canada (45p).

    Suppose you had paid ten million for the UK rights to Cliff Richards back catalogue, and now the EU lets the bloke who bought the Luxembourg rights for ten thousand go into open competition with you in the UK. You'd be pretty miffed. Multiply that by thousands of rights holders in a dozen countries. It's a can of worms. No wonder Apple have been so set on a fixed price per track or they don't offer it.

    Nevertheless, Apple is following a long tradition of charging the UK more "because the market will stand it", as with cars etc. But perhaps this time the higher 79p launch price was because the UK independent music publishers fought so hard and refused to sign up until after the launch of the UK store, and Apple needed them.
     

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