After Norway told Apple that they must change their company solution regarding the DRM, Apple was put between the hammer and the anvil.

In a letter of response from Apple to the Norwegian Consumer Council, a Scandinavian regulator, it seems that that the company is prepared to fight to continue to pursue its iTunes business model in Europe. The letter was published against the will of Apple Computers.

On the other hand the Scandinavian regulators are prepared to shut Apple down if it doesn’t come to heel with regards to its DRM system.

Apple’s position is clear. It believes that it has the right to restrict music downloaded from iTunes to iPod. Apple argues that allowing consumers to burn iTunes music to CD gives consumers all the choice they need.

The Norwegian Consumer Council is not satisfied with that response. It claims that restricting iTunes music to just one music player is illegal under Scandinavian laws and it wants iTunes opened up to all music players.

Apple is in a difficult position here. If they will agree with the demands, the company’s worldwide business will suffer. A loss in Scandinavia could encourage other governments to follow suit and Apple would be forced to relinquish the exclusivity of its iPod product which sells by the tens of millions each year.

If they win … I don’t think they will win. So they must obey or they will take their toys and move to another playground.