London - The European Commission is investigating whether Apple and the major record labels violated EU competition rules, with iTunes Store deals that prohibit users in one country from downloading music from a website intended to serve another country, the Financial Times reported on Monday.

Apple operates distinct iTunes Stores for each country, providing different catalogs of music and video and, in some cases, different prices.

The Commission's probe was initiated following a 2004 complaint from a British consumer group, which pointed out that the same music is more expensive on iTunes in the U.K. than it is on other European iTunes stores.

"Apple has always wanted to operate a single, pan-European iTunes store, accessible by anyone from any member state,” an Apple spokesman told FT.

"But we were advised by the music labels and publishers that there were certain legal limits to the rights they could grant us. We do not believe the company did anything to violate EU law, and we will continue to work with the EU to resolve this matter."

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