THE competition watchdog is being urged to investigate Apple’s iTunes service after claims that it is overcharging British music fans by up to 20 per cent.

The Consumers’ Association (CA) said that while iTunes charges customers in Britain 79p to download one track, customers in France or Germany have to pay only 99 euro cents — the equivalent of 68p.

Apple denied the charge and said that British fans were used to paying higher prices for music and that its pricing structure was in line with other British online stores. iTunes has kickstarted the market in legitimate music downloads, selling more than one million tracks since it began in the summer, driving fans away from illegal file-sharing websites.

Consumers in Britain are barred from accessing cheaper iTunes European downloads because they must give a registered address and payment details in France or Germany.

The Consumers’ Association has written to the Office of Fair Trading (OFT) accusing Apple of a possible violation of EU competition law. Under European law, British consumers are supposed to enjoy the same benefits of the single market as other citizens in member states.

With sales transacted through credit cards and no shipping costs involved, the association is asking why there should be a price distinction between European countries.

The Consumers’ Association said: “There appears to be considerable evidence that the iTunes set-up is prejudiced against the UK public and distorts the very basis of the single market.”

He added: “Residency-based price discrimination frustrates consumer benefits possible under the single market. If the OFT agrees, it will be another example of the rip-off culture that the British public are often victims of.”

Apple responded: “The underlying economic model in each country has an impact on how we price our track downloads. We believe the real comparison to be made is with the price of other track downloads in the UK.”

The iTunes Music Store remains the world’s dominant music service with more than 125 million songs purchased to date. But Apple’s success has forced competitors into a round of price-cutting.

In the United States, Real Networks slashed the price of songs to 27p. American fans can buy whole albums for £2.72 compared with £7.99 through iTunes, although the price cut is a temporary offer. the OFT said: “We are looking into the complaint from the Consumers’ Association.”

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