French law on iTunes takes effect

07 Aug 2006
00:00

(Associated Press via NewsEdge) A closely watched French law that lets regulators force Apple Computer to make its iPod player and iTunes online store compatible with rival offerings went into effect last week.

The Internet copyright law passed France's parliament June 30 after fierce debate and a gradual weakening of its initial punch. Apple had called an early draft 'state-sponsored piracy,' and some analysts have said the law could force Apple to close iTunes France and pull its market-leading player from the country's shelves.

But the law was expected to have little immediate effect. A new government regulatory authority assigned to monitor the law is not expected to be in place until this fall. Much will depend on the law's interpretation by the French courts, as well as the stance taken by recording companies.

The law was initially crafted as an effort to crack down on piracy and level the playing field for smaller rivals to companies such as Apple and Sony. Apple argued that opening its formats would further encourage pirates.

Apple did not respond to multiple messages seeking comment.

Other governments may follow France's example. Recent proposals or regulatory moves to open up iTunes have emerged in Britain, Sweden, Denmark, Norway and Poland.

The original French law would have required companies to share technical data with any rival that wanted to offer compatible music players and stores. But France's Constitutional Council left it up to government regulators to decide on a case-by-case basis whether to force companies to open their formats.

c 2006 The Associated Press

c 2006 Dialog, a Thomson business. All rights reserved

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