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This is an attempt to get a little bit of that back. The recording industry realized that Apple has become too powerful in the music industry and is trying to limit the company's pricing power. To remedy the situationthey brought their concerns to European Regulators, and as Felten suggests, European antitrust regulators have no compunctions about rushing in to force a mandatory license/steal the IP of a dominant company. Strangely enough, the recording companies have been successful at turning little ole' Apple into the bad guy.
Anyone who thinks any of this is about consumer welfare is kidding themselves. This is a battle for power between to a supplier and a distributor.
But it could make more money, arguably, by selling non-DRM music. (Especially if, as is suggested, the big-4 contracts it has now prevent it from carrying any non-DRM music, even from other labels.)
Plus, DRM is a pile of work and expense for Apple that doesn't make Apple any extra money. Of course he'd want to get rid of it; FairPlay doesn't, itself, make Apple a red cent. It exists only to make the big-4 labels happy. Jobs would dump it all in a second if he could, I wager.
The object of iTunes is to make money, so "whatever works" is the formula.
"That “good guy” thing was indeed Jobs’ invention..."
Nobody used that before Steve Jobs?