It's possible Apple will offer some free holiday music - they've done so in the past - but no music in the iTunes Store is public domain. All music they offer has the performance copyrighted even if the tune and lyrics are public domain. And by your contract with the iTunes Store you can only use tracks for personal use; you cannot use them in any sort of public or commercial setting, if that's what you meant. If you're looking for music that is free of any performance license and royalty, you'll have to look to other sources.
Message was edited by: varjak paw