Dec 6, 2004 • 1 min read

OFT reckon Apple pricing policy unfair

The OFT has reported Apple's iTunes to the European Commission over allegations that UK customers pay more than mainland Europeans for downloads.

Apple face a possible falling out with European authorities following news that the UK Office Of Fair Trading has reported the iTunes service to the European Commission over allegations of unfair trading, mainly because UK customers are charged 20% more for downloading tracks than those customers on mainland Europe.

The OFT is acting after complaints from consumer rights magazine Which? Their principal policy advisor, Phil Evans, told reporters this weekend: "The online music market is a huge growth area; the Single Market should work the same in this market as in others. We're campaigning for free movement of goods and services in Europe and we'll take on any company, or group of companies, that seek to carve up the market to their benefit."

As previously reported, Apple's UK price of 79p per track works out considerably higher than the 99 cents per track charges elsewhere. By current exchange rates iTunes customers in Germany and France are paying 68p, in the US tracks sell for 51p and on the new Canadian version of the download platform tracks are selling for 43p each.

Apple are yet to comment on the OFT's moves, although they have previously defended their pricing policies arguing: "We believe the real comparison to be made is with the price of other track downloads in the UK."

However, one of the big players in the European download sector, OD2, disagrees - their European sales and marketing director Ed Averdieck told reporters: "Our retailers charge everyone in Europe the same price, and we believe there should be such a unified pricing policy. If you look at [OD2 client] MSN, for example, it charges 99 cents in the eurozone and 69p in the UK [the same amount]. We believe this is right and that there is no reason why UK consumers should have to pay any more."

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