French bill threatens iPod, iTunes exclusivity

A new bill in France could force Apple to let iPod users buy music from other download sites while also allowing other music players to buy songs from iTunes.

French lawmakers adopted amendments to the online copyright bill on Friday that would break the Apple/iPod exclusivity bond. The iPod is designed not to play music from rival downloading services. ITunes, Apple’s massive online song catalogue, only allows iPod owners to download music.

Under the draft law, copy-protection technologies used by Apple would have to be altered in order to work with competing services and music players. Companies that refuse to do so could be ordered to comply by a judge, enforced by the threat of fines.

The bill still needs approval from France’s Senate to be made into law. There’s no word yet on when that could happen.

A statement in the amendment says the current iPod/iTunes situation is “anti-competitive” and holds the consumer hostage. ITunes is the leader in global online music sales.

Apple would not comment on the French bill.

Consumer groups are hailing the French bill saying it’s the only way to give customers real choice.

“It’s an essential condition for consumers and for the market itself,” said Julien Dourgnon of UFC-Que Choisir, France’s main consumer rights group.

UFC has already filed a lawsuit in French courts against Apple’s exclusive music format.

Analysts say Apple could follow Microsoft’s example in its row with the European Union’s antitrust laws — delay compliance and wait to be sued since court cases tend to be long and profits from the iPod/iTunes relationship may outweigh any potential penalties.

France is Europe’s third-largest music download market.