EU looking at iTunes for Possible Competition Rules Violations

April 2, 2007

The Financial Times reports European Union regulators are investigating Apple iTunes online music store for possible violation of competition rules.

The respected publication adds that Apple and several major music companies had been forwarded a "statement of objections" alleging that the deals underpinning the sale of music through iTunes in Europe might violate competition rules.

Letters have recently gone out from the EU to Apple and "major record companies" including Sony BMG Music Entertainment, Universal Music Group, Warner Music and EMI Group PLC., the Financial Times said.

As to the specific complaint, the FT said the charges focused on the fact that in Europe, iTunes prohibits users in one country from downloading music from a Web site intended to serve another. That would be a violation of the EU's rules against restrictive business practices.

In Apple's defense, company spokesman Steve Dowling said that Apple indeed wishes to operate a Europe-wide store, but music labels and music publishers have legal and copyright concerns about such an entity.

Dowling did add that Apple would continue to work with the European Union to resolve the matter.