The company has instead set up a possible showdown with record labels in the UK over wholesale pricing.
Apple has been charging about nine US cents per song more for music on its UK iTunes store compared to the standard prices its charges for iTunes music across the rest of Europe.
The European Commission had begun an investigation of the pricing differences after it received a complaint from the UK consumer protection organisation Which?
Apple announced yesterday that within six months it will lower the prices it charges for music on its UK iTunes store to match the already standardized pricing on iTunes across Europe.
It said it would now 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.
Commenting on the outcome, European Competition Commissioner Neelie Kroes said “The Commission is very much in favour of solutions which allow consumers to benefit from a truly Single Market for music downloads.”
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