"All you can eat" iTunes would be uncompetitive

 

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By Stuart Turton

Posted on 20 Mar 2008 at 09:10

Apple's introduction of an "all you can eat" music service "would produce a long and drawn out fight in both the US and European courts," according to a rival.

Reports suggest Apple is considering offering its customers unlimited access to iTunes store in return for paying around £50 extra for their iPod or iPhone.

However, rivals are concerned the move would be anticompetitive.

"I only know what I've read but the plan sounds very similar to the tying practices Microsoft used with Windows and Explorer," says David Pakman, chief executive officer of digital music service eMusic, reported on Cnet. "And Microsoft is still paying the penalties for that one."

According to Pakman, Apple's dominance of the MP3 player market would mean that other music services, such as his, would essentially be walled off from 70% of the market, as customers wouldn't need to look anywhere else to purchase their music.