Apple Says No UK iTunes Price Cut

Apple had promised it would cut the cost of tracks on iTunes in the UK to bring it into line with European prices. But now it says it won't. Why?

Back in January Apple promised it would cut the cost of tracks purchased on iTunes in the UK to bring them in line with the rest of Europe. It made the concession under pressure, following the announcement that the EU was set to investigate the pricing under competition laws.

At that time UK tracks cost 79 – 99 pence ($1.60 – $2), as opposed to 67-87p ($1.35 – $1.75) elsewhere in Europe – still drastically higher than in the US, where tracks are 99 cents.

Since iTunes users could only purchase tracks in the country where they lived, there was no chance for British users to access cheaper tracks elsewhere.

But as the pound has fallen against the Euro, the imbalance that was there in January means the imbalance no longer exists, and Apple says there’s no need for it to cut the cost of UK tracks.

An Apple spokesman explained to the BBC that "the announcement was that we would match the UK price to that of other lower priced European countries. This is no longer necessary as exchange rates have effectively done it for us."

So why are tracks much more expensive on iTunes in Europe than in the US? Apple claims the cost of doing business in Europe is higher.