French MPs Say Song Downloads Must Work on Any Player

France has rejected any monopoly in the music download market, requiring that downloads be accessible to any type of digital player. The legislation would be a blow to Apple’s online music, ITunes, which dominates the global online music market and can only be played on the Apple iPod. The decision reflects a growing sentiment among French politicians against foreign domination of any sector of the economy. The French national assembly rationalized that the move will protect freedom of choice for consumers, whereas Apple claims the right to protect intellectual property. Apple, which has a 70 percent share of the online music market, could respond in two ways – sharing its technology with competitors or pulling out of the French market. The vote also upsets plans of Apple’s competitors, Sony and Microsoft, which offer players also coded to exclude some downloads. The French law, which must be approved by another legislative body, could open the online music market to non-Apple software and hardware suppliers and make that specific technology an international standard. – YaleGlobal

French MPs Say Song Downloads Must Work on Any Player

Angelique Chrisafis
Monday, March 27, 2006

The dominance of the Apple iPod hit its first European stumbling block yesterday when French MPs voted to force companies to allow music downloads to be played on all types of digital players, not just their own.

Apple's online music store, iTunes, dominates the global online music market, selling about 3m songs a day for 99 cents or 79p each. But the tracks can only be played on Apple's own iPod, which is also the most popular digital music player.

France's national assembly voted overwhelmingly yesterday to protect the consumer's "freedom of choice", saying customers should be able to download songs and videos from the internet on to any platform.

If the French senate approves the bill in May, Apple iTunes will have to decide whether to start sharing the secrets of its exclusive copy-protection technologies so that rivals can offer compatible services and players, or simply pull out of France, which is Europe's third-largest music download market.

The new law would also have serious consequences for Apple's main competitors in France. Sony uses a similarly exclusive code on its Connect store and Walkman players. Microsoft uses Windows media software for its music players. Some digital music players only work with Windows and are incompatible with iTunes.

For the first time, consumers could be able to download music to an iPod from stores other than iTunes, or to rival music players from iTunes France. "It's good for the market," said Alexander Ross of media law firm Wiggin. "It enables all digital music retailers to compete on a level playing field."

France, currently preoccupied by protectionist "economic patriotism", has voiced concerns about American companies dominating the online music market. The French culture ministry has urged other European countries to follow its example in defending the rights of consumer downloaders.

Martin Rogard, adviser to the French culture minister, told Bloomberg: "Someone who buys a song has to be able to listen to it, no matter which device or the software of choice". He said a proprietary format such as Apple's iTunes was "not in the interest of the consumer, nor the interest of the creator. It only benefits the company and we're there to defend the consumer, our citizens."

Apple iTunes, which first started selling music on the internet in 2003, last month sold its billionth song. In some markets it accounts for 70% of music downloads. The company has so far refused to comment on the French bill. "Apple now has to either open up or close down [in France]," Mr Ross said. Most industry commentators expect it to pull out of France, but to ensure it complies with the new law it would also have to block French consumers from buying tracks from its UK and US iTunes websites.

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