In confirmation of rumors we began hearing this week, Apple has retaliated to Amazon's DRM-free music offerings by changing the price model for iTunes.
Now, DRM-free music will be available for the original price as DRM-laden tracks: $0.99 each. On top of that, Apple is seeking to expand their DRM-free offerings to include more artists, particularly independent labels. Similar to Amazon, however, they are only making this available in the U.S. The motives behind this are not clear, and there is no statement from Apple to suggest they plan to expand it.
Though their hand may have been forced by Amazon, they don't seem particularly enthusiastic about making DRM-free music available on an equal playing field as their locked-down counterparts.