Whatever the music, whatever the exchange rate, whatever the technology, the British pay more for music. Linkin Park’s recent album Minutes to Midnight costs £8.99 at HMV, but you can buy it for $11.99 from Amazon in America (£6.04) and for HK$99 (£6.37) in HMV’s sister store in Hong Kong. Even on iTunes, music is cheaper in the United States and Europe than in Britain.

The higher charges reflect the costs of doing business in Britain: cost of living, higher shop rents and, until recently, the relative dominance of expensive specialist stores. American music executives say that Britain is the most expensive place to record in.

However, a series of carefully constructed legal agreements and the extra difficulty of importing from overseas have ensured that that it is not easy for Britons to shop and get better prices elsewhere. It is legal to have CDs shipped into the UK from elsewhere in Europe, but it is not possible to buy downloads from other iTunes on the Continent — a matter under investigation by the European Commission.

CD Wow, the retailer fined yesterday, was accused of doing what would be possible in any business that operates without copyright — shipping CDs from cheaper East Asian markets to sell direct to Britons. It hopes to portray itself as a consumer champion, selling CDs at about £8, £1 below the UK average.

Yet CD Wow’s case differs from the iTunes inquiry, eroding claims to principle. In the case of physical CDs, it is not legitimate for retailers to sell cheap CDs from Asia at nonEuropean prices. Price legitimately varies by territory, reflecting local copyright rules, while artists and record companies often sign regional deals to maximise respective strengths.

Nevertheless, CD Wow has a point in its favour: the power of the internet is tipping the balance to global pricing. It may have broken the rules, but how long can the principle of differential pricing — that is, more expensive UK pricing — be maintained?

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