Europe Takes a Bite Out of Apple

European regulators in several countries have begun to scrutinize the connection between Apple's iTunes Music Store and Apple's iPod digital music players.

The French National Assembly passed a bill earlier this year requiring any music sold over the internet to be compatible with formats of all portable music players. The law also legalizes the creation of software to defeat digital rights management (DRM) technology, such as Apple's Fairplay, which controls the number of times a purchased song can be copied or shared. Although the law has yet to be passed in the French Senate, Apple has responded by threatening to shut down the French version of the iTunes Music Store.

Apple is facing increasing criticism on the other side of the British Channel about its pricing structure and incompatibility. The cost of a song in Great Britain is 79 pence (approximately $1.45), whereas in the European Union a song costs 0.99 Euro (approximately $1.25). This arrangement has caused a British consumer advocacy group to file a complaint with the European Commission alleging overcharging for goods by Apple. Apple has also recently been discussed in a hearing in the British House of Commons regarding digital media issues as record companies argued against Apple's incompatibility.

In Norway, the Norwegian Consumer Ombudsman's Office (COO) held that parts of the iTunes User Agreement violated Norwegian law. One of the provisions cited by the Norwegian COO was a reservation of a right to change the terms of the agreement by Apple at any time without notice to users. Another provision was a disclaimer of responsibility for any viruses that are incurred through the use of the program. The Norwegian COO has yet to rule on the legality of Apple's limiting use of downloaded music to iPod music players; however, the Norwegian COO is likely to rule against such limitations by Apple. Both Sweden and Denmark are expected to voice similar opinions in the near future.

Apple has taken a more measured approach to the British and Nordic legal proceedings and is determined to resolve these issues without shutting down any iTunes music stores.