A couple of Register articles on the state of play in the EU:
The European Commission (EC) has confirmed it is looking into allegations that Apple’s iTunes Music Store discriminates against UK consumers by charging them more to download the same song than it charges other European music buyers.
UK retail giant Woolworths today put pressure on rival – and better known – online digital music services like Napster and Apple’s iTunes by offering sales tax-free downloads, bringing the per-track price down to 67p.
[…] There’s a catch, of course: the new price is only available for the next six weeks. Woollies is simply absorbing the 17.5 per cent VAT due on each download itself as a loss-leader to encourage sales.