It means the commission is dropping its investigation into Apple's iniquitous pricing policy, which saw us paying up to 10% more than some of our European brothers for music. In return, Apple wants the record companies to stop charging it more for the tracks it sells here – the reason Steve Jobs has given for the price difference.
Apple's got six months to lower its charges, the same deadline it has given the record labels. Likely we'll end up paying the average €0.99, as seen on the continent – that's about 74 of our New Pence. A chop of only 5p we'll grant, but it's the principal of the matter, you hear?