Apple had fiercely opposed the bill, calling it "state sponsored
piracy". In March, the National Assembly, France's lower house, had
approved a bill which mandated interoperability between
services.
Currently only iPods and computers can play music from the
world's leading legal music download site iTunes. Similarly, music
from other sites can often not be played on iPods. The law sought
to change that and force all shops and all devices to work
together.
This meant allowing users to crack digital rights management
systems and forcing Apple to inter-operate with other music
platforms and sales operations. French lawmakers have diluted the
law, however, and expect it to be voted on next week.
While it still says that all systems must inter-operate, the new
law says that that requirement can be waived with the permission of
the rights holders in the music. That means that with the
permission of record labels and artists, Apple can carry on in
exactly the same manner as before.
The new law was drawn up by a committee of members of the two
French houses and will be voted on by both the Senate and the
Assembly later this month. It establishes a regulator which can
order companies to license their music in rivals' formats.
The law would, in France at least, prompt a shift in power
between Apple and labels. Apple has held the upper hand till now
because it runs the massively popular iTunes service, selling all
music at the same price, against the preferences of labels. But if
Apple needs the permission of music labels to carry on trading
under the same terms in France that could shift the balance of
power, say industry observers.
Apple had threatened to pull out of France altogether if the law
was passed. It may yet do so. "We are awaiting the final result of
France's legislative process," said a company statement. "[We] hope
they let the extremely competitive marketplace driven by customer
choice decide which music players and online music stores are
offered to consumers."
