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Apple, Record Labels Hit with Anti Competition Probe

Tuesday, April 3rd, 2007 at 7:45 AM - by

A European Commission probe is looking into allegations that Apple Inc. and the major record labels are violating competition regulations throughout Europe. News of the investigation was released while Apple and EMI were announcing a deal on Monday to sell copy protection-free songs through the iTunes Store, according to Financial Times.

Apple, Universal, Warner, EMI and Sony BMG are supposedly violating European laws by preventing users in one country from purchasing music from the iTunes Store in a different country.

The office of the European Union competition commissioner stated that Apple's practice of limiting iTunes Store sales on a country by country basis "violate the [EU] treaty's rules prohibiting restrictive business practices."

Apple stated that it would prefer to offer a single European version of the iTunes Store, but was stopped by the record labels. The reasoning behind the music company stance was that legal restrictions limited the licensing rights they could grant.

Apple representatives added "We do not believe the company did anything to violate EU law and we will continue to work with the EU to resolve this matter."

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