Microsoft (Nasdaq: MSFT) 
is not the only technology giant to face European woes lately.
French lawmakers are scheduled to vote Tuesday on a new copyright law that could result in a slew of music download services competing for iPod users' dollars in the European nation.
Currently, the iPod only accepts music downloads purchased from the iTunes Music Store. France is indirectly targeting Apple (Nasdaq: AAPL) in efforts to breed interoperability in the digital download market.
The French law would force the iPod maker to open its platform to music downloads from competing services. Apple sells about 3 million songs a day for 99 cents each, and sold its 1 billionth digital song last month. The law could take a bite out of Apple's foreign revenues.
France's Stance
At issue is FairPlay, Apple's proprietary copyright protection format. Sony (NYSE: SNE) also has its own format, ATRAC3. France is concerned about interoperability issues.
"The technical measures must not result in the impediment of interoperability," stated an article in the law proposal. "The technical measures can't be an obstacle for the free use of the oeuvre or protected object within the limits of the rights foreseen by the current code."
The five lawmakers from the governing conservative Union for a Popular Movement that introduced the legislation are concerned that without guaranteed interoperability, there is a major risk of "captive client bases and an anti-competitive situation, with the consumer held hostage as a result."
It is rumored that Apple may shut down its iTunes service in France if the law passes. Apple executives could not be immediately reached for comment.
David and Goliath
The French government is trying to encourage the legal sale of music online, according to Francois G. Laugier, a corporate transactions and international business attorney in the Redwood City, Calif. office of Ropers Majeski Kohn & Bentley. To French officials, that means allowing iPod users to purchase music from sites other than iTunes.
"France has a tradition in the fight between David and Goliath of protecting the little guy," Laugier told MacNewsWorld. "France is focusing on the user rather than on the company that is providing service."
Focusing on the user, however, could pose a significant challenge to Apple's business model. If that happens, legal analysts said Apple has two choices: prepare for battle or change its business model.
The European Bandwagon
The consequences of the French bill would be magnified if the rest of the European Union hopped on the interoperability bandwagon. So far, Laugier has heard nothing of other European nations' plans to pursue similar legislation.
"It seems to me very difficult to implement this legislation at a European-wide level because it would take too big of a bite into Apple's business. Right now, Apple's is the leading model in terms of digital music," Laugier said.
Still, legal experts expect the French bill to become law tomorrow, especially considering that the legislation has already passed through the more conservative branch of the French government. Laugier does not expect much opposition to the bill from France's Senate.
Apple's Opposition
France may find opposition from Apple and Sony, though. Apple could choose to voice its rights in French courts. If there is no ear in France, the computer maker could take its case to the European court in Brussels.
"European laws apply to each individual country above the laws that have been passed in those specific countries. So it is a possibility that Apple could go to the European courts to have this law ruled unconstitutional according to the European rules," Laugier said. "Apple may be headed into a legal battle."
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