Apple's iTunes to face EU antitrust probe

The European Commission confirmed Tuesday it had opened an antitrust probe into Apple's iTunes and the way it sells music online in co-ordination with major music companies.

The commission alleged that distribution agreements Apple has signed with the record labels to sell their music on the iTunes online stores in EU countries "contain territorial sales restrictions which violate" EU competition rules.

"Consumers are thus restricted in their choice of where to buy music and consequently what music is available, and at what price," the Commission said in a statement.

"For example, in order to buy a music download from the iTunes' Belgian online store a consumer must use a credit card issued by a bank with an address in Belgium," it added.

Apple has two months to answer questions issued in the letter, the commission said. If found guilty of violating EU competition rules, the U.S. company could face hefty fines, which in theory could total up to 10 per cent of the company's worldwide annual turnover.