Britain's music fans will pay 10 per cent less for downloads from Apple's online iTunes stores within six months, the European Commission said today.
The European Union's top antitrust watchdog said the move would end its proceedings against Apple which operates iTunes, used by owners of iPods, the popular MP3 player made by Apple.
"The Commission is very much in favour of solutions which allow consumers to benefit from a truly single market for music downloads," EU Competition Commissioner Neelie Kroes said in a statement.
Apple's iTunes customers can only buy music in the EU from the part of the store directed to their country of residence and which contains music cleared for sale in that country.
Residence is checked through credit card details. For example, a consumer in the UK must use a credit card from a bank with an address in Britain.
"Prices for iTunes downloads in the UK are currently nearly 10 per cent more expensive than downloads in the euro zone," the Commission said.
"Following iTunes' announcement, UK consumers will soon pay the same for music downloads from iTunes as customers from euro-zone countries."
Apple said it would lower the prices that it charges for music on its UK iTunes store to match already standardised pricing on iTunes across Europe.
The company said it had to pay some record companies more to distribute their music in Britain than elsewhere in Europe.
"Apple will reconsider its continuing relationship in the UK with any record label that does not lower its wholesale prices in the UK to the pan-European level within six months," it said.
The Commission said antitrust proceedings had also clarified that it is not agreements between Apple and the major record companies that determine how the iTunes store is organised in Europe. "Consequently, the Commission does not intend to take further action in this case," the Commission said.