France vs. The Free Market

This past Tuesday, French lawmakers passed legislation requiring companies to produce digital music files compatible with any digital music operating device. This new law would also lighten penalties for digital pirates, from upwards of $300 to between $50 to $180.

What this could mean for companies like Microsoft, Sony, Vivendi Universal and pack leader Apple Computer is a possible exit from France's digital music market. Apple has already spoken out against the new laws, and warned against a bourgening "state-sponsored culture of piracy" in France.

What this could mean for French consumers is cheaper music and protection from 'lock-in' by a single digital vendor, since open proprietary systems would raise competion between music retailers and slash prices for downloading digital files.

Is France's push for interoperable systems justified, or an issue for competitive authorities and the free market? In this case, I have to go with the latter. Apple and similar companies should not be penalized for the strength of their business models--it's the consumer's choice to either invest in an extensive iTunes catologue or go with companies with more liberal hardware standards--which do exist. If Apple's business model proves too restrictive for consumers, the market will--as it always does--push it towards its own demise.

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A group blog exploring our media world. Produced by the Digital Journalism: Blogging course at New York University, Spring 2007.

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