Europe's music industry doesn't want to see an online music monopoly develop, and is favouring local players in the emerging industry, according to The Independent.

The report warns that Europe's music labels are reluctant to license music to Apple, "because they fear its long-promised European music download site will dominate the online business", citing industry insiders.

It seems the big five labels are shy of allowing Apple to become dominant in Europe's online music market, allowing it to dictate terms to them in future in a similar way to MTV.

"The older record executives don't want that again, where they are over a barrel with one big provider," the report adds.

Universal eLabs president Larry Kenswil hinted that Europe's labels may favour homegrown music services rather than US imports in January this year.

Speaking at the Royal Society for the Arts Music and Technology conference in January 2004, he told Macworld that European vendors also appear in the digital music distribution frame, asking: "Why should the US services get all the money?"