iTunes UK Prices Questioned

"LONDON -- Apple Computer's three-month-old European iTunes service came under attack Wednesday from Britain's Consumers' Association, which asked the Office of Fair Trading, a business watchdog, to investigate why the service's prices are higher than those in the United States.

British iTunes customers pay 79 pence ($1.40, or 120 eurocents) per song, while French and German residents pay 67.7 pence ($1.20, or 99 eurocents), a difference of 17.5 percent. Americans pay even less: just 99 cents per song"
source: wired news story