Bernhard Warner
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In Brussels, in the offices of European Competition Commissioner Neelie Kroes, a file is building on Apple Computer Inc. It is filling with arguments about iTunes from consumer groups across Europe. Inequitable pricing across territories and a restrictive digital rights management (DRM) top the list of grievances.
Officials are even collecting details about a product the public has yet to get its hands on - the Apple iPhone (www.apple.com/iphone). What piqued their interest is a familiar wrinkle with Apple technology - constraints on consumer choice. Like the iPod, the iPhone handset is only compatible with iTunes.
Consumer groups in seven European countries now are clamouring for Apple to open up its Fairplay DRM (the multimedia technology built by Apple to prevent users from playing their files on unauthorised computers) to rival MP3 players.
The Norwegians have gone a step further. Its consumer protection laws will deem iTunes illegal by October if it does not open up to competition. French, German and Dutch consumer watchdogs are talking along similar lines.
The EC has been investigating iTunes since 2005. The UK's Office of Fair Trading (OFT) issued a formal query to the Competition Commission about why Brits pay 17 per cent more for iTunes downloads than their eurozone compatriots.
If Brussels rules Apple's dominance is negatively affecting consumers' ability to purchase music downloads it could spark change. Technology companies - not just Apple, but Sony, Microsoft and Real Networks - could be compelled to loosen their proprietary restrictions. But a relatively successful launch for Microsoft's iPod rival, Zune in Europe will almost certainly scupper any anti-trust probe in the making.
If you are looking for swift justice, move to Oslo. Because while an EU-wide decision on Apple's trade practices could still be years away, the Norwegians are forcing Apple's hand with a relatively straightforward strategy.
Apple now has two choices in Norway. It can either comply with the ruling or shut down iTunes there. If Apple goes down without a fight in Norway you can bet that emboldened consumer groups across Europe will put more pressure on policy makers. Call it fair play, European style.
Bernhard Warner, formerly Reuters' internet correspondent in Europe and senior editor for The Industry Standard Europe, writes about technology, the internet and media industries. He can be reached at techscribe@gmail.com
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