Apple rejects Scandinavian iTunes claims

Stan Beer
Thursday, 03 August 2006 18:35

IT Industry - Strategy

Although its letter of response to a Scandinavian regulator, the Norwegian Consumer Council, has been published against the will of Apple Computer, it has become clear that the company is prepared to fight to continue to pursue its iTunes business model in Europe.

On the other hand the Scandinavian regulators are prepared to shut Apple down if it doesn't come to heel with regards to its DRM system.

Apple's position is clear. It believes that it has the right to restrict music downloaded from iTunes to iPod. Apple argues that allowing consumers to burn iTunes music to CD gives consumers all the choice they need.

The Norwegian Consumer Council is not satisfied with that response. It claims that restricting iTunes music to just one music player is illegal under Scandinavian laws and it wants iTunes opened up to all music players.

It is well nigh impossible for Apple to succumb to the demands of Scandinavian regulators because it could impact the company's business worldwide. A loss in Scandinavia could encourage other governments to follow suit and Apple would be forced to relinquish the exclusivity of its iPod product which sells by the tens of millions each year.