Sep 7, 2007 • 1 min read

Apple and majors due to attend EC hearing

Apple and the major labels are due to attend European Commission hearings on 19-20 September into whether iTunes geographical restrictions within Europe are anti-competitive.

Executives from Apple Inc and the major record companies are due to attend a hearing in Brussels from 19-20 Sep with regards the European Commission's previously reported and ongoing investigation into whether geographical restrictions on iTunes purchases within Europe are anti-competitive.

As previously reported, the EC has for some time been investigating allegations by consumer rights groups who claim restrictions that stop customers in one European Union country from buying music from an iTunes service in another violate EU free market rules. The restrictions especially penalise us UK customers, because the cost per track is higher in Britain than elsewhere in Europe.

From the start Apple have argued that the restrictions are forced by the agreements they have with the major record companies. The hearing later this month will give EC officials the opportunity to analyse these agreements in more detail. EMI, SonyBMG and Universal Music are all expected to attend (though not Warner Music - presumably because neither they nor their owners are Europe based), as well as execs from Apple Inc. Because each major label has its own confidential contract with Apple each major will have its own closed session with EC officials, with Apple attending all three.

Because of the confidential nature of the agreements there will be no published summary of the hearings. Rather the EC officer leading the sessions will report his findings directly to EU Competition Commissioner Neelie Kroes.

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