The wonders of the Free Market. Sigh.

[Commie Pinko Dirtbag]

http://news.independent.co.uk/low_res/story.jsp?story=483475&host=3&dir=349

The music industry has forced a leading internet retailer to stop importing bargain CDs from Asia to the UK in a deal that will add £2 to the cost of chart titles.

CD Wow!, one of the few successful dotcom companies, yesterday reached an agreement with the British Phonographic Institute (BPI) to avoid months of legal battles. The move, which came days before the pair were due to meet in court, is a blow for consumers, who will no longer be able to buy the latest top 40 hit for £8.99.

From Sunday evening, the Hong Kong-based retailer will charge £10.99 per CD to shoppers in the UK and Ireland to cover the higher cost of buying its music from within the European Economic Area. Previously it had avoided paying European prices by sourcing its CDs from the cheaper Asian markets. The settlement represents a rare victory for the music industry, which has suffered losses because of the number of music-buyers seeking lower prices on the internet.

Philip Robinson, who heads CD Wow!, said that the deal was a "huge disappointment" but insisted that his business, which will remain in Hong Kong, was not threatened. "We're not acknowledging that we were in the wrong, but simply that the risk-reward ratio of spending months in court wasn't right for us."