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Apple to cut iTunes download prices

Updated on 09 January 2008

Source PA News

Apple is to lower the prices it charges UK customers for iTunes downloads to bring them into line with Europe.

The technology giant currently charges 79p per download in the UK compared with 99 cents (74p) on the Continent.

Apple's pledge to cut UK prices within six months follows a European Commission probe into alleged overpricing by the company.

But the Commission said that its antitrust proceedings found no evidence of agreements between Apple and record labels over the way iTunes was run.

The Commission welcomed Apple's decision to lower UK prices and said no further action was necessary.

Apple blamed the record labels for its higher UK prices, saying some of them charged it more to distribute music in the UK than elsewhere in Europe.

The firm threatened to "reconsider its continuing relationship in the UK" with any record labels which do not bring their UK prices into line with Europe within six months.

Apple chief executive Steve Jobs said: "This is an important step towards a pan-European marketplace for music. We hope every major record label will take a pan-European view of pricing."

The investigation into Apple was sparked by consumer group Which? complaining that UK customers were being charged substantially more for iTunes downloads.

Apple would have faced a multimillion-pound fine if it had been found in breach of EC Treaty rules which ban restrictive business practices. But the Commission unearthed no evidence of any such agreements between Apple and the record companies regarding the iTunes online music store.

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