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A compromise between the parliament's two houses means that digital music store operators will not be forced to licence their copy protection (DRM) technologies to other companies. Apple will not have to share its FairPlay copy protection software and can maintain the closed link between iTMS downloads and its own iPod portable music players, provided they obtain permission from the labels, artists and songwriters whose music they sell.

This will require it strike new licensing deals with copyright holders, a problem it shares with Sony, which also uses a proprietary format for downloads. Other digital music vendors license DRM technology from Microsoft and are not affected by this section of the law.

If Apple cannot strike a new deal, then it may have to license FairPlay to other device manufacturers, a prospect which some believe may persuade it to withdraw from the French market.

Disputes will be resolved by a new regulatory authority that has been given the power to order companies to license their

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exclusive file formats to rivals, but only if the restrictions they impose are 'additional to, or independent of, those explicitly decided by the copyright holders'.

The future of iTunes in France - and to a lesser extent Sony's Connect service - lies with the country's record labels, who may welcome this opportunity to force Apple to drop its resistance to DRM licensing. The music industry has said often enough that it would like to see greater interactivity and compatibility, something which consumers are also likely to prefer.

Apple declined to comment on the final version of the law - having described the earlier version as an encouragement to 'state-sponsored piracy'.

The new law also introduces penalties of up to three years in gaol and EUR€300,000 fines for knowingly offering or advertising an unauthorised download service for music or videos. However it does allow consumers to make private copies of any content they buy online and stipulates that any DRM restrictions have to ensure this remains possible, though it is unclear how many copies can be made.

The law has been condemned by both consumer rights campaigners and by technology companies.

Americans for Technology Leadership, whose founders include Microsoft, said consumers would ultimately suffer from what they see as excessive regulation of the wrong kind

'While the final version is slightly less severe than the earlier draft, it still illustrates France's complete disregard for intellectual property,' it said in a statement.