iTunes in Europe: Legal Troubles Brewing? Status, Analysis and Outlook

Generator Research Limited
August 21, 2006
20 Pages - SKU: GS1331250
License type:
  • Historic Roundup
  • Consumer Rights Issues
  • New French Law
  • Nordic Developments
  • EC Regulation
  • Analysis and Outlook
Apple's iTunes Music Store is currently open for business in 17 European markets which account for more than 36% of global music sales. But the company's closed, non-interoperable approach is causing concern to consumer rights representatives, government departments and regulatory authorities.

Three Nordic markets have said that Apple's approach is illegal. Meanwhile, in France, a newly-enacted law is intended to encourage an interoperable market for digital music and replay devices. At a higher level, the European Commission has been scrutinising Apple's strategy for some time, having become concerned that it may be having an adverse impact on the development of a healthy digital music market.

In the end, these developments could mean that digital music services and devices sold in Europe must be interoperable, like the case with CDs today. On the other hand, it may be that the difficulties in implementing a pan-European legal framework covering the area are such that nothing much will change at a practical level.

Drawing upon in depth interviews with the representatives from Nordic consumer rights groups, legal professionals and EC representatives, this report provides a clear explanation of the current situation as well as an analysis of the impact on the market both in the short, medium and long term.