iTunes Ripping off UK Consumers

13 comments
Thread Title:
Songs more expensive in UK than France, Germany etc.
Thread Description:

UK consumers are used to paying more for the same products and services as everyone else but it seems EC want to level the playing field for MP3 fans..

The European Commission (EC) has confirmed it is looking into allegations that Apple's iTunes Music Store discriminates against UK consumers by charging them more to download the same song than it charges other European music buyer

In the UK, the iTunes Music Store charges customers 79p (€1.14) to download a single track. The same song costs €0.99 when it's downloaded from Apple's other European music shops.

Comments

this goes on in many sectors

Many suppliers do this, especially on the web, that is whay they ask what your home country is.

Want to book a hotel room in London and are American then you pay more than a Brit.

DougS

Yeah

We're used to being screwed in the UK.

Same for plane tickets

If you buy a transatlantic rt flight from UK you pay close to GBP100 in taxes. If you buy the same trip (the other way) in the US you pay around $100.

The current exchange rate is GBP1 = $1.9

The upside is you can normally get cheaper tickets in the UK.

And to keep this thread on track - the tracks and indeed the players are less expensive in the US than they are in any of the EU.

As my brother would say - if you are in the UK, you're having your arse felt.

actually cheaper

The UK is actually cheaper.

Doug

Cheaper than where

Cheaper for what?

Rip off Britian

It's an over used cliche but true. I think multi nationals know they can get away with higher prices here.

Ukgimp

Your know when you get over 40 your brains go to Mush leave dougs alone... he is OLD

DaveN

sexy though

Dave little boy

With your thirst for beer and food I may outlive you though:)

Gimpy is gimpy and soon his missus is telling him he is having kids:)

DougS

cheaper for travel

We would much prefer to sell our travel products to Americans and Europeans.

Doug

Happy Birthday DougS

but you're all babies to me....

So when you guys compare prices (on topic) in UK and the rest of the EU, are you figuring in current conversions, or is your tender all the same these days? I can't keep track, because the only comparison I have is what my daughter pays on the ecom in Germany - and SHE compares to US $$ obviously (since the buy up or down is part of their compensation package)....

Did some playing:

Took prices from Apple's sites.
Removed VAT from UK prices as Apple prices are without tax in US
Used the current exchange rate of $1.90 from UCC - your bank won't give you this rate

shuffle 512 costs the average brit an extra $9.16
shuffle 1gb costs the average brit an extra $6.20
ipod mini 4gb costs the average brit an extra $18.88
ipod mini 4gb costs the average brit an extra $15.91
ipod 20gb costs the average brit an extra $28.61
ipod photo 30gb costs the average brit an extra $41.29
ipod photo 60gb SAVES the average brit $14.64

I actually throught it would be more. The 17.5% VAT is a bit of a killer.

Exchange rate is the curly one

Exchange rates are always moving, and if you are selling Jaguar cars made in UK, you have to worry about exchange rate implications when your main market is in US. Either you cut margins or lose volume when the dollar falls. You are quids in if the dollar is high and you can hold prices.

I worked once for a multinational selling widgets for a US company in Germany. With a srong dollar and a weak DM we could sell substantialy more widgets in Germany and still make less money in dollars for our US masters, who failed to appreciate what was happening!

Basically for most products you set a price for what the local market can bear, and do your financial calculations on that. The Euro has done quite a lot to equalise out costs across Europe. The UK remains outside and has to continue with "local" pricing.

Silicon.com covers here

UK OFT refers to EC after CA report Apple who says nuffin.

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