French call Apple's bluff

IN A MOVE that Apple has dubbed 'State Sponsored Piracy', the French government has ordered the outfit to stop using its iTunes software like a monopolist and to open its formats to its rivals.

French politicians surprised the world by backing legislation that could force Apple to make its iPod music player and iTunes online store compatible with rivals' offerings.

The law is a watered down version of a tougher earlier draft in that it has a loophole that could allow Apple and others to dodge the data-sharing demands by striking new deals with record labels and artists.

However, Apple had threatened that if the government pushed through its law, it would withdraw its operations from the country.

Sauces with Apple say it might still do that as a warning to other nations which do not do as they are told. Apple executives fear that that similar anti-trust laws are being talked about in Britain, Sweden, Denmark, Norway and Poland.

Americans for Technology Leadership, an outfit founded by Microsoft and its chums, said that the French moves would "break the cycle of innovation that benefits consumers by destroying the incentive companies have to create new and better products".

More here.