EU launches anti-trust probe into Apple's online music sale

Apr 3, 2007, 8:47 GMT

Brussels - The European Commission confirmed Tuesday that it has launched an anti-trust probe into online music sales by computer company Apple and several major record labels.

Distribution deals between Apple and the record companies to sell their music on Apple's popular iTunes internet stores in European Union countries prohibit users in one country from downloading music from a website intended to serve another, the commission said.

'Consumers are thus restricted in their choice of where to buy music, and consequently what music is available, and at what price,' the commission said in a statement.

In order to buy a music download from the iTunes' Belgian online store a consumer must use a credit card issued by a bank with an address in Belgium, the EU executive gave as an example.

Apple and the record labels now have two months to defend themselves and answer questions raised by the commission, which is the EU's top antitrust authority.

If Apple and the music companies are found guilty of violating EU competition rules, they could face hefty sanctions. The commission has the power to impose fines worth up to 10 per cent of a company's worldwide annual turnover.