Wednesday, January 24, 2007

European drive against iTunes builds support

POSTED: 10:44 a.m. EST, January 23, 2007

OSLO, Norway -- German and French consumer groups have joined a Nordic-led drive to force Apple Inc. to make its iTunes online store compatible with digital music players made by rival companies, a Norwegian official said Monday.

Currently, songs purchased and downloaded through iTunes are designed to work with Apple's market-leading iPod players but not competitors' models, including those using Microsoft Corp.'s Windows Media system. Likewise, iPods generally can't play copy-protected music sold through non-Apple stores.

Last June, consumer agencies in Norway, Denmark and Sweden claimed that Apple was violating contract and copyright laws in their countries.

Norwegian Consumer Ombudsman Bjoern Erik Thon said French consumer lobby UFC-Que Choisir and its German counterpart, Ferbraucherzentralen, joined the effort late last year, and other European countries are considering it. Finland's Kuluttajavirasto consumer group is also part of the effort.

"This is important because Germany and France are European giants," Thon said. "Germany, in particular, is a big market for digital music."

The Nordic regulators have met Apple officials at least twice on the complaints.

"Apple is aware of the concerns we've heard from several agencies in Europe and we're looking forward to resolving these issues as quickly as possible," Apple spokesman Tom Neumayr said Monday.

"Apple hopes that European governments will encourage a competitive environment that lets innovation thrive, protects intellectual property and allows consumers to decide which products are successful."

Thon said Norway gave Apple until September to change its polices, or face possible legal action and fines in the country.

"It cannot be good for the music industry for them to lock music into one system," he said.

A French law that allows regulators to force Apple to make its iPod player and iTunes store compatible with rival offerings went into effect in August.

Apple has been working to expand its iPod sales in Europe and said during its quarterly report last week its advertising and sales efforts were paying off.

Company officials say the iPod gained market share in France, Germany, Italy, Spain, Belgium, Sweden, Austria and Denmark during the holiday period.

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