RSSEU Consumer Protection Targets iTunes
By Scott M. Fulton, III | Published March 12, 2007, 1:56 PM
On the eve of the announcement of a new Europe-wide consumer protection program, whose stated aim is to ensure consumers' ability to return products purchased online for refunds if they're not satisfied - regardless of what country they were purchased from - the lead architect of that program, EU Commissioner Meglena Kuneva, hinted to the German newsweekly Focus that Apple's iTunes service could be directly impacted.
One possible cause for consumer dissatisfaction may be the realization that music tracks purchased from iTunes are not portable across all digital devices or CD players. Last January, officials in Norway (not an EU member) declared iTunes illegal in that country for a multitude of reasons, the alleged non-interoperability of the underlying system being just one of them.
Another was the fact that Apple does not give iTunes customers any redress - a way to "return" downloaded material with which they're dissatisfied, for a refund. Consumers could become dissatisfied after learning of iTunes tracks' non-interoperability, only after they downloaded them.
The Norwegian government has given Apple until October 1 to change iTunes to comply with that country's interoperability laws - a ruling that does not appear to have Apple's engineers working overtime at present. But even if Apple could comply with that directive, it would still need to begin offering customers a way to receive refunds, perhaps within a 30-day term - what's being called a "cooling off period."
It's this kind of term which was ostensibly the subject of Kuneva's Focus interview, published this morning; though previews of the interview published online focused primarily on her iTunes stance. Reuters' translation from Focus' German-language online preview (her spoken language was probably English, not her native Bulgarian) of today's printed interview cites Kuneva as saying, "Do you think it's fine that a CD plays in all CD players but that an iTunes song only plays in an iPod? I don't. Something has to change."
But a later reference to the same interview, not circulated by Reuters but appearing in this morning's Xinhua Daily, directly attributes the something that must change not to iTunes' DRM, but to Apple's lack of a refund policy. The Focus preview quotes Kuneva as adding (translating from German), "To that end, we need a general period during which consumers may revoke their purchases, in order to get prices to level out [with those of competitors] and sales contracts to become more uniform."
Some news sources which failed to translate the entire interview today either praised Kuneva for championing the general anti-DRM cause, or took her to task for having failed to champion the cause nearly enough.
Last November, Commissioner Kuneva was granted responsibility for consumer protection. Her purview includes regulation of online commerce. Citing the startling statistic that only 6% of EU citizens shop online across borders, last month Kuneva announced a program aimed at the development of a single, uniform policy for redress that would alleviate consumers' fears that their grievances will not be heard due to their country of origin.
Such a policy would apply not only to EU member countries but to Web sites based in other countries -- including the US -- that include Europeans as their customers. Apple's iTunes would be one of the largest of those firms. Kuneva's recommendations for this policy are expected to come in the form of a "Green Paper" to the EU Parliament in Brussels tomorrow.
Digital rights management is not among the items in Kuneva's purview. So although her personal views on DRM are now clear, if tomorrow's Green Paper is open-ended on the subject of how it is that customers are expected to "return" downloaded music tracks with which they're dissatisfied, the policy she outlines could actually end up requiring some form of DRM (perhaps not necessarily a proprietary one) to enable redress to work electronically.
For instance, vendors such as Apple may be allowed to revoke the rights of users to listen to tracks which they "returned." For such a revocation policy to be feasible, a DRM system would need to be capable of rendering tracks useless after the so-called "cooling off period" has expired.
So while the effectiveness of Commissioner Kuneva's advocacy against DRM is being prematurely debated in the popular press, her Green Paper could actually present Apple and others with a potential payoff not for eliminating DRM, but for improving it. We'll know more early tomorrow morning.
Wow. This sure became a ranting playground. I don't understand when consumer protection became unamerican.
Right now, IPods are king of the hill. Everyone plus my mother has one. Like most consumers, she doesn't have a clue what DRM is or what it means to her.
Fads change. Logically, somewhere in the future another company will introduce the new "it" music player. When this happens consumers will finally realize what happened.
I don't believe this "cooling off period" will work. 30 days won't fix the problem when the consumer owns an IPod filled with stuff he can't move to the next "it" product.
I'd rather see a way to transfer the licensed music from Apple to Acme(whatever company name). I'd pay a small transfer charge allowing me to redownload my legally purchased music from the new company.
Isn't this more of a logical fix to the problem?
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|The store for the Microsoft Zune operates in the exact same way. Does this mean Microsoft will be in more trouble with the EU once the superior Zune begins to outsell the iPod?
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|If it is the "cooling off period" you mean then Microsoft is in "trouble" now. They have to abide by the same laws as all internetshops have to (except for special or custom made products).
If it's the interoperatibility issue then MS hasn't anything to worry about. I don't really know but I believe the tracks are in the wma/wmv formats and those can be played on different mp3 players.
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|The music from Microsoft's Zune store uses a completely different type of copy protection that is NOT compatible with Plays For Sure or any other "open" DRM. This means that the only portable music device that can play music purchased from the Zune store is Microsoft's own Zune hardware.
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|To make everything interoperable would be to stifle competition... because by definition there could only be only one standard.
To make everything interoperable we would need to all use the same operating system. Since Windows has the majority of the market - we should ban Linux, Mac OS, and the other straggles out there.
We should ban HD DVD and BlueRay because they are not interoperable with the standard DVD player. Dang it, my new BMW just up and died because I filled it with diesel... return policy anyone?
At some point the consumer needs to take some responsibility for the purchases they make. Government's role should be to prevent deceptive advertisement and Bible length EULAs... not to force conformity. In the end it is the consumer that pays for excessive regulation with overall higher prices.
Does this mean I can get a refund on my online purchase of World of Warcrack?
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|So...How much did they pay you for your distorted view? Hmmm?
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|Troll?
If you feel it is distorted, perhaps you could possibly clarify what, exactly, you have a problem with regarding it.
Just sayin'...
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|It seems to me that Europeans are feeling the pinch of their lack of competitiveness in the world stage. If you can't build anything yourself, then by golly, penalize those who can. Pathetic. But why are we surprised at this? They basically capitulated to the Reich. They needed American help to ward off Soviet aggression. And what thanks do we get? They are all Marxists at heart (aside from the Brits, who are the only ones to actually have the guts to do things for themselves - and wonder of wonders, have a vibrant economy to show for it). Let's hope that America wises up and levies a tax on all things EU.
Why is it only Europeans can't understand the licensing/DRM issues that surround an Itunes purchase? In a way, the EU is admitting that it denizens are not smart enough to exist in a capitalist world.
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|And why are most americans stupid, short-sighted and dumb (didn't have any fantasy left here and assuming you are an american by your comment). If it's picking on the EU you want be my guest but at least think a bit before you post something. Big companies like Microsoft aren't really American companies anymore but multinationals. Many countries, including EU countries, fare well by those multinationals.
And that there is an cooling off period for internetpurchases by law is a fact. Even you competitive, non-Marxist and perfect Americans to which we have to be thankful to for helping us 65 years ago have to abide by those laws.
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|The point of the fact is that in the time period it takes a "person" to lost interest in a electronically download purchase, it could have been copied many times over. What you are saying is that the same laws that apply to physical products should apply to products that exists only as a bit pattern.
Most people who do a little research are aware that Itunes work on a close system. They are also aware that you can always decode your CD full of Itunes tunes into MP3s (or other format of your choosing).
Somehow, the restrictions that the EU wants to impose on American companies don't seem to be needed here in the U.S. And while Itunes is far from perfect, it does work for many people. Imposing the EU beurocracy on something that works (as opposed to the Airbus 380 project) seems counterproductive.
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|Somehow, in spite of being born in a country a hemisphere away from where I currently live, I learned to value many of the things this adoptive country has given me.
We are not talking about the composition of corporate entities (which many are multinationals). We are talking about the EU's application of regulatory policies designed for another age and its failure to adopt to the current products and distribution processes.
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|Here you are talking again about restrictions the EU wants to impose on American companies. All companies have to abide by the same rules and restrictions.
On the other part you are right. The cooling down period for songs is ridiculous.
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|I understand this when buying something physical like TV or whatever, but it just doesnt feel the same with "iTunes" and so on... Especially comparing CDs to iTunes feels a "bit" off to me.
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|silly ... but i like the fact that EU is actually going after Apple for a change.
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|So long as they jump from one moneybag to another it's alright?
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|For once I agree with PC_Tool
I think the EU is getting very power hungry, just going after big US companies.
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|*gasp*
*sputter*
*eyes roll back*
*faints*
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|Power Hungry? Are we talking about "Old Europe"?
Naaah! We control the Oil in the Middle East.. if Europe complains.. we just close the tap. Yeeha!
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|LMAO. "Power hungry"?
Compared to "US of A", this "EU power hunger" is childs play in comparison.
OMG! they are going to eat "the apple"!
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|wtf are you talking about?
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|At least the US of A, has made all its money by creating inventions and technology, instead of sponging off of other companies because we have no intelligence for invention of our own.
If it wasn't for America, the rest of the world would still be in the dark ages.
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|ROFL!
I see 'Patriotism' is still the favourite class of students in the US?
Thanks for the laugh, though. ;)
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|And capitulation seems to be the favorite activity of the Europeans.
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|Check this out, Dude.
http://www.militarycity.com/map/
Why do you think we have all those military bases there?
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|Why is the EU on such a trustbuster rant? Money? It's hard to fathom that the biggest problem in the EU is audio interoperability...
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|Steve Jobs pledged to drop DRM if the major labels would let him. That's not good enough Steve! What about the things that YOU could do to show your sincere about dropping DRM?
Sign the petition asking Steve Jobs to back his pledge by April 1 at defectivebydesign.org
Steve could:
1) remove DRM for independent artists
2) drop DRM on Disney movies (he's their largest share holder)
3) Take a stand against the DMCA.
Time for him to stand behind his word or be shown to be playing us the fool.
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|1.) This would require a complete rewrite of iTunes. The DRM is added by the software to every track, regardless of licensing.
2.) He may be the largest but he can do *nothing* without the approval of the Board. What's he going to do if they vote him down? Sell his shares? lmao...
3.) Didn't he just do that?
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|Yeah! He should sell his shares to rewrite iTunes! Then, while he's at it, he should get rid of protected binaries so we can all run Windows and Mac OS side by side on our PCs!
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|And with any luck, he'll completely destroy the company he's single-handedly resurrected since his return.
Or not. :P
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|Not sure Microsoft would agree with you.
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|the problem is these nations believe it is privilege for itunes to sell in their country so they must do as they say if they wish to stay.
a correct statement would be "itunes has right to sell however they want to sell. if consumers do not like the way itunes works then they can go elsewhere." the problem is these nations act as though itunes is making their citizens shop on itunes. the people choose to shop on itunes so therefore they can choose to stop. if they want to use an ipod then use itunes simple as that. take it or leave it they are not forcing anything on anyone. it is a free market let us not forget this and create a socialist state horizontaly. as for returning digital material, would this not create a group of individuals who will then download, copy, remove drm, and then return?.... would not a better suggestion be to require itunes to inform their customers that songs purchased are for ipod only?... should that not be a simple answer?
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|I think nillinu hit the nail on the head -- the EU is basically a union of basically socialist countries. As such, they want to control all aspects of business, consumerism, etc. Forget free enterprise folks -- the EU will protect you --- unfortunately, it will come at the cost of you options/choices!
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|Sadly, to operate within a country, you must abide by it's laws. If you choose not to do so, you must face their courts or choose to no longer operate within that country.
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|You're damn right! **** the Europeans. If they don't like our products, go shop somewhere else. Why should Jobs make DRM Fairplay Open Source? We own the music and movie industry. We set the rules. Either you learn to dance to the tune or we'll hunt you down like Saddam.
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|That's why there are lots of consumer protection programes in Europe.
HD Ready, we didn't get stitched up with non-HD HDTV's
1 year warrantys, everything has a minimum 1yr warranty in Europe, and you have consumer rights upto 6 yrs. I believe the US is 90 days..
I'm sure there are plenty of other examples..
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|It will be interesting to see what happens when a major product gets pulled from the "shelves" of Europe because they refuse to change their product. I wonder how long it would take for the European consumer to to force the EU to let the porduct back on the shelves, particularly if it was something as popular as the iPod or Windows.
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|Their laws are there to protect consumers who don't know any better - just like the warning labels on FDA-approved foods and drugs. Although it would be great to remove all the warning labels from household products, many people would be upset to find that drinking ammonia is hazardous to your health.
Just like some people are no doubt upset to find their can't transfer their iTMS-purchased music to their iRiver.
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|Maybe, just maybe, people ought to read and do some research on things that interest them the most. The big difference between an Itunes tune and a prescription drug is that as far as we know, the only bad reaction to an overdose of Itunes purchases is a big dent in the wallet. Whereas a drug overdose, well....
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|many people would be upset to find that drinking ammonia is hazardous to your health.
...and would quickly be removed from our gene-pool.
Downside?
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