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Apple to face EU antitrust probe

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On April 3, 2007, 1:20 PM

The European Union has launched an antitrust probe against Apple’s iTunes and major record labels alleging violations to the EU law. The EU claims Apple’s distribution agreements with record companies limit customers freedom of choice by imposing territorial restrictions, forcing them to buy songs exclusively from their country of residence store.

"Consumers are thus restricted in their choice of where to buy music and consequently what music is available, and at what price," it said in a statement. "For example, 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."
Apple has two months to answer to the European Union’s letter or face legal action. Although they have already shifted the blame to the record labels stating they want to operate as a single store for all Europe, but they were advised by the music labels and publishers that there were certain legal limits to the rights they could grant Apple.

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