Trouble for Apple's iTunes in Norway

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By Steve Ragan Jan 29, 2007, 11:37 GMT

April fools day is too far off for this to be a prank. Norway really did declare Apple’s popular music store and is product illegal. In what many including major news services are calling the strangest, if not the most ridiculous, move ever against a company. Norway’s consumer ombudsman ruled iTunes illegal because the files downloaded from it cannot be played on rival music players.Let that sink in and think of this. The deadline, October 1, 2007, was set for Apple to have source and other related code available to other technology companies. Failure to do so will result in them being taken to court with the threat of operations being shutdown in the country. Now while that seems harsh, add to the fact that Germany, Sweden, France, and Finland, are also backing the Norwegians. If the other countries follow suit, and deny Apple the right to do business in their countries, that is a potential loss of hundreds of millions of consumers. "They must make iTunes music compatible with other players than the iPod by the end of September, or we will take them to court," the ombudsman, Bjoern Erik Thon, told Reuters. Once in court, Apple could face several different repercussions. What is likely to happen is Apple will be fined for each song downloaded, until they comply with the ombudsman complaint. Apple’s Fairplay technology means that songs downloaded form the number one online music source can only be played on the iTunes player or the Apple iPod. Consider that Apple owns the Fairplay code and it is proprietary to them alone, and that their format is unique to the point the files are not even MP3’s they are M4P AAC files that are protected with the Fairplay DRM. According to the complaints, this is illegal according to Norwegian law. Apple has not made a public comment on this issue, and does not appear to be in a hurry to do so. Why should they? This is almost a classic case of extortion. It would almost be better if they are fined and for them to count it as a separate business fee, and continue to operate as normal. Many will argue and agree with the European countries. While the method is unique, Norway makes a point many will echo. If you bought it, then it should be yours to do with as you please. That may well be the case, but you also as a consumer have a right not to buy from a vendor who does not allow your ‘freedom of choice.’ That is the simple fact of most DRM providers. They forget that the consumer can and often will find a way to remove the protection, which is illegal, or they simply will shop somewhere else. No one said Apple iTunes was fair or right, but Apple’s policy, and the technology used is well known. Apple has never once attempted to hide the fact that their music only plays on their platforms. Why all of the sudden are so many starting to complain and why is a large consumer rights group threatening to sue?Money, which is the simple answer and likely the case, because Fairplay blocks other companies from using the M4P AAC files iTunes offers. No one buys those companies products. In the interest of business, that is a fair assessment. It cuts others out of the market and no one can compete. However, unlike most cases where a company cuts out its competition, Apple is a unique brand. There are hundreds of places online to shop and download music. That music will play on any portable player, including the iPod. Apple just has more brand recognition, and more money for marketing.As the consumer, and the ombudsman as a consumer rights group knows this, it is your choice on where, when and how you spend your money. If Apple and the Fairplay technology strip you of your rights, then do not buy from them. If your product cannot play M4P AAC files, then switch gears and market to the consumers who do not want M4P AAC files, and who want a choice as to what to do with their music. Attempting to force a company, as large as Apple, to meeting your demands will likely fail. This story and Apple’s response will be interesting, and should make for good conversations around the office water cooler.

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politicallyincorrectJan 29th, 2007 - 14:35:49

This is not about money at all. Instead, it's a baldfaced freedom-to-manage restriction by promoters of that old 'helpful-government' voodoo. Trouble is, virtually all 'helpful' actions by governments carry a price and the price is usually much higher than any perceived, short-term benefit.

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something for nothingJan 29th, 2007 - 14:39:41

So, in essence,
these countries are suing a company because the product they make and the service they provide are exclusive.
Is this like suing crispy creme for not having a diabetic equivalent to their donuts? Or suing microsoft because Xbox games won't play on PS2s?

The whole thing is like the article stated, it sounds like extortion.
There are other websites to legally download music. The music that is actually on the itunes store is there because of deals with publishing companies and artists. That reflects that there are deals and obligations that are protected by the MP4ACC format. To remove it and then allow the technology to be completely naked in Europe of all places would mean that the music could be basically ripped and immediately distributed illegally to pretty much everybody who wanted it for free. European Napster. I think that Apple should do exactly what the article says, pay the fine for each song downloaded, and maybe even offset the cost of operating by incrementally increasing the price of song downloaded in those countries. Then, let the free market decide what people want. If the people in Norway, Germany, etc, want to download the music for the higher price, they will. If the higher price gets them agitated (which it will) maybe they'll contribute to the process and petition their own governments to stop the nonsense against companies that are providing services to them.

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A talking ravenJan 29th, 2007 - 14:40:21

'April fools day is too far off for this to be a prank. Norway really did declare Apple’s popular music store and is product illegal. In what many including major news services are calling the strangest, if not the most ridiculous, move ever against a company.'

OK, two brief points: 1) Exactly what major news services are engaging in that, well, strange and ridiculous exaggeration? Absolutely none that I have seen; and till I've seen one, I'll call that plain dishonest reporting. 2) Norway did hardly 'declare it illegal.' As you state yourself in the subsequent paragraph, what's happening is that an ombudsman is threatening to *take it to court*. Big diff.

Oh, and the hackneyed libertarian mantra that the consumer is free to vote with his wallet is one that can be applied to any business/consumer relation. If it's that simple, one might as well repeal all consumer law and leave everything up to supply and demand.

But it's not.

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JamesJan 29th, 2007 - 21:41:45

I'd treat this just like I'd treat all the Windows monopoly BS in the world. If I were Bill Gates, I would have just said, 'Okay, you guys don't like it...No more Windows, then'. I mean, if I had $50 billion in the bank, I'd just flip the bird and say sayonara. Windows XP forever, baby!!!

Steve Jobs should just shut down the ITMS in Norway effective today pending 'further evaluation of the market'. Make an example for any other country that wants to go down this road. The ITMS is no sacred cow. No profits to be made there. People will continue to buy iPods, though. ITMS is not the only place to get music, and the iPod is not LOCKED in this way by any stretch of the imagination.

I also like the idea of 'bundling' any added cost into the price per song number for any of this governmental BS.

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JonathanJan 29th, 2007 - 23:24:19

Dear oh dear. Is it too much to ask that these people don't comprehend that it is possible to burn a music CD of your iTunes songs - costing €0.50 - and then to do with it as you would do with any other CD?

The crass stupidity of this is quite, quite unbelievable. What a waste of taxpayers hard earned money..

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OlivierJan 31st, 2007 - 16:17:17

People just don't understand that it is a world domminated by Microsoft. If Apple withdraws its DRM from the market, we are mainly stuck with Microsoft's DRM, which WON'T play on iPods or Linux machines.

I think this it as people want it to be like. One software company that rules us all.

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AmazedFeb 1st, 2007 - 05:39:10

I find it strange that MS was attacked for so called 'non disclosure' most were up in arms, now the boot is on the other foot everyone cries foul !!! Amazing

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