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EU Calls To Break Apple EU Calls To Break Apple's iTunes-iPod Link
By Elizabeth Millard
March 12, 2007 8:22AM

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If Apple opened iTunes in Europe in response to demands by the European Commission to delink iTunes from the iPod, it is possible that other regions might follow suit, demanding that Apple create multiple versions of the iTunes music store. At least one analyst says the more likely response is that Apple would simply shut down iTunes in some countries.
 

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The European Union's Consumer Protection Commissioner, Meglena Kuneva, has lashed out at Apple, claiming that the company's strategy of bundling iTunes and iPods together is unfair to consumers.

According to a German weekly magazine, Kuneva pointed out that CDs will play in all CD players, but that a song purchased on iTunes will only play on an iPod, and that "something has to change."

The Commission added that the statements were personal views of Kuneva, not a definitive policy position. But Kuneva is in charge of a review of cross-border consumer rights, which means his position could lead to revisions in current EU laws.

Problem Child

Apple began having difficulties with Europe in early 2006, when France proposed a law that would require online music retailers to open their systems, so that media could run on multiple types of media players.

Although the law would apply to all retailers, iTunes is the dominant player in the country in terms of online music.

Soon after, Norway threatened to sue Apple if it did not open access to its music store and software, claiming that the company violated Norwegian law because it forces consumers to buy an iPod if they want to use iTunes.

The country's ombudsman said that iTunes imposes unreasonable and unbalanced restrictions, and that Apple should either change the service Relevant Products/Services or face it being shut down in the region. The country has given Apple until October 1 to change its tune or face legal action.

Model Citizen

If Apple were to tweak its online store in Europe, it would go against the company's primary business model, noted David Radack, chair of the intellectual property department of Pittsburgh-based law firm Eckert Seamans.

"The configuration Relevant Products/Services of iTunes is consistent with how they've done hardware Relevant Products/Services and software, making them proprietary," he said. "Norway, France, and other countries might not like it, but it's very doubtful that Apple would change its business model in Europe to meet their requirements."

If the company chose to crack open iTunes in Europe, it is possible that other regions might follow suit, demanding that Apple create multiple versions of the online store. What is more likely is that Apple would simply shut down the site in some countries rather than be forced to change its model, Radack noted.

The whole issue could spark fresh debate about the nature of copyright for digital music, particularly with recent comments about digital rights management by Apple CEO Steve Jobs, who noted that the company is willing to change its DRM, but only when others in the marketplace promise to do the same.

"Digital music presents a complicated set of issues surrounding copyright," said Radack. "If you buy a CD and want to sell it, then you can, because you own it. But when it's online and you can duplicate the songs hundreds of times, then questions of the best copyright protection come into play."
 

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