January 8, 2008

Apple to reduce the price of iTunes

In response to the complaint lodged with European Union (proceedings) against Apple iTunes service for over charging its UK customers for buying iTunes by Which?, Apple has announced that it will reduce the price of its iTunes in UK. Earlier, Which?, the website that provides reports on various consumer utilites has made a charge against Apple that its UK customers paid almost one-tenths more than those in other countries in Europe.

Initially, Apple cited the reason of higher price that it has to pay to music industry to distribute the iTunes in the UK. As, now, it has decided to reduce the price of iTunes within six months, Apple also announced it will break deals with any record industry that does not reduce its wholesale price within six months from now, the guardian reports.

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

Currently, Apple runs its iTunes online store which provides music downloads for its customers across Europe. As per EU norms, the consumers of European Economic Area (EEA) can only purchase songs which are cleared for sale in the country which has one of the views in EEA meaning the UK customers cannot buy songs outside the UK as they are required to buy the songs using their credit cards which provide details like residential address etc.

Neelie Kroes, the EU ompetition commissioner commented on Apple’s to move to make price cuts:
"The commission is very much in favour of solutions which allow consumers to benefit from a truly single market for music downloads."

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