Cannot gift app to user of foreign iTunes account?

I have a UK iTunes account.
I gifted an app to a user of a Dutch iTunes account.
The system accepted my purchase, and charged me accordingly.
The user of the Dutch account however was unable to download and install the app due to some error stating that it was not possible because of the original purchase having been made in the UK iTunes store.
This was a surprise, to put it mildly.
Why allow a purchase of this type go through if it turns out for some no doubt odd technicality, it's not actually possible in the first place?
As far as I can tell, everyone still gets paid (I'm £1.49 poorer). So what's the problem?
"Reporting a problem" on the purchase only ends up giving you the option of "resending" the app, but still no cigar...
Any solutions?
Cheers!

Gifting applies to same countries. Contact iTunes and ask if they can provide you with a refund.

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