London - Confirming a report from yesterday, Apple (NASD: AAPL) on Wednesday announced that it will lower the prices at its U.K. iTunes Store within six months, to standardize pricing with other European iTunes Stores. Prices for iTunes downloads in the U.K. are currently nearly 10% more expensive than downloads in the euro-zone. The move settles an ongoing dispute with the European Union, which took action after a complaint from a U.K. consumer group.

"The Commission is very much in favor of solutions which allow consumers to benefit from a truly Single Market for music downloads," EU Competition Commissioner Neelie Kroes said in a statement.

However, Apple maintains that it must pay some labels more to distribute their music in the U.K. than it does elsewhere in Europe, and said it "will reconsider its continuing relationship" with any label that doesn't lower its wholesale prices to the pan-European level within six months.

"This is an important step towards a pan-European marketplace for music," said Apple CEO Steve Jobs. "We hope every major record label will take a pan-European view of pricing."

Related Links:
http://www.apple.com/pr/library/2008/01/09itunes.html

http://snipurl.com/1x0w1 (EU statement)