Apple Iceland is planning to sue the Icelandic state because of the high duty imposed on iPod MP3 players in Iceland, according to daily newspaper Morgunbladid. “We are treated differently than elsewhere in Europe,” says Bjarni Ákason, Manager of Apple Iceland. He claims that the exorbitant taxes mean that the cost of purchasing an iPod in Iceland is about 35% higher than elsewhere in Europe.
Ákason estimates that about 30,000 Icelanders, or one tenth of the population, purchased an iPod last year, but only 10,000 did so in Iceland. He concludes that everyone therefore loses out: Apple Iceland, through a loss of revenue, and consumers who buy abroad and may not be eligible for a warranty in Iceland.