Apple iTunes Cut may Backfire on Customers

Following a Which? complaint to the EU in 2004, Apple have agreed to reduce the cost of tracks on the UK iTunes store from 79p to 74p (in line with pricing on its other European sites). (El Reg and BBC) While this is obviously welcome, one part of Apple’s press release gives rise to concern:

Apple will reconsider its continuing relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months.

So what happens, if after six months, these record labels refuse to lower their prices? Will Apple remove these labels from the store? If so, then isn’t that bad for the consumer? At least if they remained, the consumer still has a choice.

I still maintain that unless you are interested in single tracks, it is cheaper to buy from play.com or CDWow.

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