The campaign group has requested that the consumer watchdog investigate whether the price differences are anti-competitive.
The iTunes music store, which has been running in the US since April 2003, opened for business in the UK, France and Germany in June this year. The three stores offer single downloads for a price of €0.99 in France and Germany, and £0.79 (€1.20) in the UK and this, says the consumer pressure group, could be anti-competitive.
In a letter written to the OFT, the Consumers' Association has today argued that the practice of residency based price discrimination frustrates consumer benefits possible under the single market and that the iTunes system allows market abuse, going against the principles of the single market.
Under European law UK consumers are supposed to enjoy the same benefits of the single market as other citizens of member states.
However, the CA says the iTunes service is set up in a way that prevents UK consumers from taking advantage of the cheaper download service offered to the French and Germans: UK consumers need to have a registered address and payment mechanisms in France or Germany to access the service or pay the higher price charged in the UK.
"There appears to be considerable evidence that the iTunes set up is prejudiced against the UK public and distorts the very basis of the single market," said Phil Evans, of the CA. "If the OFT agrees it will be another example of the rip-off culture that the British public are often victims of. "
Responding to an earlier request by the CA to justify the price differential, Apple explained:
"The underlying economic model in each country has an impact on how we price our track downloads. That's not unusual, look at the price of CDs in the US versus the UK. We believe the real comparison to be made is with the price of other track downloads in the UK."
The company has made no other comment so far.
Elsewhere, unsubstantiated reports have surfaced that Apple will be making a mammoth settlement payment to Apple Corps, the London-based record label behind The Beatles, in respect of a trade mark infringement suit filed last September by the record company.
The two companies, which have been in dispute twice before, are at daggers drawn over the use by Apple Computer of the word 'Apple' and apple logos in conjunction with iTunes.
