CNET News reports that Apple just dropped the price of their DRM-free iTunes Plus tracks from $1.29 each to 99 cents each.

These are the better sounding, 256 Kbps AAC tracks that don't have digital rights management, and can therefore play on any devices, (including many cell phones) that support the AAC format. EMI is the only label to sell DRM-free tracks on iTunes.

It's blindingly obvious that Apple did this in response to Amazon's new MP3 store, which sells DRM-free tracks from both EMI and Universal, and at lower prices (89 cents to 99 cents each). Universal agreed to sell DRM-free tracks to other services besides Apple in what appears to be a bid to reduce the Cupertino-based company's influence on the online music market.

Apple drops price of DRM-free iTunes [CNET News]