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Currently music stores such as iTunes have to negotiate rights on a country-by-country basis, obtaining a separate licence - and running a separate store - for each country.

The Commission wants them to be able to obtain one licence for the whole EU. This will make it easier for new stores to setup and increase competition in the market. They also want rights societies to have to compete with each other, rather than the current situation where each holds a monopoly in its own country.

It denied claims from musicians and composers that such a change would reduce the amount of royalties they receive, saying that by having to compete, rights bodies would become more efficient, leaving more money for artists.

Competition Commissioner Neelie Kroes said the deal could "benefit cultural diversity by encouraging collecting societies to offer composers and lyricists a better deal in terms of collecting the money to which they are entitled".

Artists will also be able to choose which society they allow to manage their rights, she added.