BW Speculation on the French DRM Legislation [7:19 pm]
Apple to France: Drop Dead? [pdf]
French lawmakers are softening the language of a proposed law that would force Apple Computer (AAPL) and other companies that sell digital music to make their songs compatible with all the music players on the market. But the move is unlikely to quell concerns at Apple, making it very possible that the company will close its iTunes music store in France.
[...] The spectre of Apple shutting down the French outpost of its iTunes Music Store is very real. Apple hasn’t said as much publicly, but France’s portion of Apple’s music-download business accounts for less than 1% of the business unit’s worldwide revenue. A contentious new legal and regulatory environment would make it hardly worth the effort — let alone the increased cost — of keeping the French store open.
Shutting down the French unit of the iTunes operation wouldn’t affect sales of iPods, however, nor of other Apple products. French consumers also would be able to continue downloading the iTunes software and using it with their iPods. They simply would not be able to buy music from the iTunes store.

