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The Washington DC based Copyright Royalty Board is in the process of reviewing a proposal made by the National Music Publishers’ Association, which would increase online music store royalties from 9 cents to 15 cents per track. 

In my opinion, as the largest online music store in the world, Apple’s opposition and response to this predicament is a bit over the top, but I can see where they’re coming from. 

“If the [iTunes music store] was forced to absorb any increase in the … royalty rate, the result would be to significantly increase the likelihood of the store operating at a financial loss - which is no alternative at all,” Cue wrote. “Apple has repeatedly made it clear that it is in this business to make money, and most likely would not continue to operate [the iTunes music store] if it were no longer possible to do so profitably.”

In short, with an increase in royalties per track, Apple would stop profiting from iTunes and would therefore be forced to shut it down. 

I guess all we can do is wait, the Copyright Board is expected to make its ruling this Thursday at which point (depending on the ruling) Apple might or might not carry out its threat of shutting down iTunes.

[MacRumors]