Slashdot Mirror
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.
Seriously, if the European Union would get off it's butt and actually make the various European versions of the RIAA offer the same licensing across all of Europe, like they have already ordered them too, then this would not be an issue. Apple charges different prices because they are charged different prices. Now the UK has ruled that Apple is violating a EU law, but obeying it would break the law in any given member of the European Union. This is largely a matter of considering intellectual property to be a good or service, when sold by Apple, but not otherwise considered a good or service across the EU as a whole.
Mostly this is just the UK pissing and moaning because they are getting ripped off more by their RIAA clone than other countries are and they want Apple to do something about it. Apple doesn't really care how much the songs cost, they just want them as cheap as possible. They don't even make any money on the issue, it is just a way to get people to buy computers and mp3 players.
I'm sure this will result in the EU ordering each country to license IP across the EU under the same terms as locally, and in another 10 years most of the countries will actually get around to doing so. In the mean time, Apple will fight things out in the courts, stop selling in the UK, raise prices across all of the EU, or take a loss selling into the UK for the sake of good will. None of which seems like a good deal for anyone involved.
Wouldn't the same principles forbid use of CSS to charge different prices for DVDs in different regions?
No, because there's only a single DVD region for the EU (and even other countries outside the EU, like Switzerland).
The iTunes case is about different prices inside the EU. A German guy is free to buy a car in Spain. A UK resident can't buy a song from the French iTMS. That's likely to be illegal.
England is not the UK. In fact the labour governement is still 'considering' the Euro, but given that Gordon Brown (not English), likely the next Prime Minister, is hostile to it a switch doesn't look likely in the short term. Eventually I imagine they'll have to switch over to the Euro - it's certainly quite handy for frequent travellers within the EU and for businesses.
The prices have never been equivalent to the exchange rates (not even close). The UK store has consistently been more expensive. This is probably because the record companies think they can get away with it (as they do with CDs), not because of exchange rate difficulties.
It's really a bit of a farce that they're forced to have different stores in different countries anyway. Apple would probably prefer to just have one store and let the user change their language/music preferences, but the music companies have too much to lose from allowing a global marketplace in their IP, so they're trying to hold out as long as possible.
As with regional DVD encoding it'll probably die a quiet death somewhere between 2010 and 2020.