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Apple to Cut Price for Songs on U.K. iTunes Store

Posted on: Wednesday, 9 January 2008, 21:00 CST

Apple, in a move to settle a European Union antitrust case, said today it will slash the price of music downloads from its U.K. iTunes music store.

The European Commission last year said the Cupertino company illegally restricted where iTunes users can buy songs and set higher prices for the U.K. iTunes store than those in other European countries. The organization accused Apple of "territorial sales restrictions" because consumers could only buy music downloads from the iTunes of the country in which they reside in.

Consumers in the U.K. had to pay 10 percent more for downloads than those in other European countries.

Apple, which has sold more than three billion songs through its iTunes store since 2003, said the lower prices for songs on the U.K. iTunes store will take effect within six months. They will match the standardized charges that exist across Europe, the company said.

Apple also said it would "reconsider" any partnerships with UK record labels that do not lower wholesale prices within six months.

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

The commission said Apple's move ends its suit against the company.

In addition to music, the iTunes store has sold 100 million TV show downloads and two million movies.

Source: San Jose Mercury News

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