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ITunes Overcharging in the UK
KennyMillar writes "The BBC is reporting that the OFT (Office of Fair Trading) has ruled that Apple is overcharging for iTunes downloads in the UK. They have referred the case to the European Commission for a ruling. One important note is that UK iTunes customers cannot buy from the French or German iTunes Stores, and this goes against European Freedom of Trade rules. A spokesman from OD2 agreed that people in the UK should not be charged more than customers in the Eurozone. I've emailed Apple asking for 20% refund on all my downloads, but I won't hold my breath!"
This is a case of the other side of the coin of globalism. Big companies like to be able to move their operations around wherever they want to minimize expenses, but consumers also want to be able to shop wherever they want to minimize prices. The infrastructure that supports one also supports the other. We need to keep vigilant to make sure the laws equally support both.
Of course, in this case, Apple is probably just passing on the policies set by the recording companies in their contracts. If my guess is right, then hopefully they can use this ruling to get more equitable terms in their contracts.
Apple's an American company. They should just set the price at $0.99 and let everyone do the math at checkout.
It is not a matter of exchange rates. Apple has to license the songs from a different organization, for a different price, in each country. All they can do to be compliant is either charge an average across the EU, funneling money from one EU country's version of the RIAA to another's version of the RIAA, or set the price as the highest price in any EU country and charge more money in some countries than they would otherwise need to.
It's not the fact that the prices differ, it the fact that a customer with a credit card in one EU country can't buy songs from the itunes store of a diffirent country. EU law says that EU citizens are free to buy goods or services from anywhere in the EU without any any rescrictions. To be fair it's not apples fault it the record companies who won't allow the tracks to be distributed under the same liecence through out the EU. Cases like this will push through laws requiring the harmonising of EU IP laws.
Now certainly you have a right to complain and say it's unfair that they charge difference prices in different countries. But I certainly don't think there's a valid argument for getting a even a partial refund.
Who are apple to come along and say whats what in the EU?
Umm, Apple is just caught between conflicting laws. It's the EU and the UK who is saying what is what. Apple negotiated a price with the BPI, added their expenses, then picked a round number close to it. If the EU can't license music for the same price across all it's member countries, why should Apple be tasked with sorting it out? If you have to sell for the same price, fine charge Apple the same price, if not, fine don't complain when Apple sells different things for different prices. Guess what, the BPI won't sell music across it's borders at all, that is because it is illegal. Apple is just running a whole series of stores selling different products (different due to the fact that the laws on pricing and sales are differnt) in different countries. Consumers may see a song as being the same, but until the law reflects that fact, Apple can't be expected to pass laws and change it.
You need to pay a visit to the grammar nazi thread. Pronto.