The end of price rorting and gouging? (Microsoft, Apple, Adobe et. al.)

[Kym]

So Apple, Adobe and Microsoft will be spanked, but what about Canon, Nikon, Pentax etc.

http://www.theaustralian.com.au/aust...-1226687739364

INTERNATIONAL IT giants Microsoft and Adobe, among others, have without justification been adding huge mark-ups to hardware and software sold in Australia, a parliamentary report into alleged price gouging has found.


Yesterday the House of Representatives standing committee on infrastructure and communications released its report into alleged price gouging and concluded the high cost of doing business in Australia, as argued by companies defending their high prices, was without foundation.

http://www.abc.net.au/worldtoday/con...3/s3813201.htm

ELEANOR HALL: A Parliamentary Committee is calling on the Government to help consumers to get around the practice of geoblocking by IT companies.

Its report has found that Australian consumers are charged on average 50 per cent more than consumers in other parts of the world and that the price difference is not because of a higher cost of doing business in Australia.

Lexi Metherell has been speaking to the chair of the Committee, the South Australian Labor MP Nick Champion.

NICK CHAMPION: We've got a range of evidence from different companies about why they might be charging the prices they did, and we got some very interesting evidence which I think consumers will look at. But for consumers the result is the same: they're paying higher prices, and we think that we need to change areas of Australian Government legislation and policy to make sure that consumers have a more competitive and dynamic market where prices come down.

(click link for more)

http://www.aph.gov.au/Parliamentary_...ing/report.htm

http://www.theguardian.com/world/201...rcent-products

Australians routinely pay a 50% premium compared with inhabitants of other countries for computer software and hardware, as well as downloaded music, games and books, a parliamentary inquiry has found. Digital and IT products, including education products and programs that assist with disabled access, are more expensive in Australia than can be explained by the country’s remoteness and differences in tax regimes, according to a report by the House standing committee on infrastructure and communications.
The report suggests educating Australian consumers on how to find the best possible prices for digital and IT goods, even where geoblocks are in place to prevent international purchases.
The MPs have recommended scrapping stringent parallel import restrictions that are meant to prevent consumers finding cheaper goods overseas, as well as altering the law to secure greater consumer rights.
The report, entitled At What Cost? IT Pricing and the Australia Tax, suggests, as a last resort, banning geoblocking – making it impossible for companies to restrict access to their products based on a consumer’s location in Australia – if its nine other recommendations fail to right the market.
In discussing the price differences, the committee noted the particular impact on libraries, the education sector, non-profit organisations and low-income students, and heard evidence from small businesses about the impact of greater costs on international competition.
The report describes access to web-based services as “all-important”, saying: “If people are experiencing isolation, social disadvantage, financial difficulties, or other challenges, perhaps even relating to their business, and are not able to access affordable IT, their situation is likely to get worse.”
In gathering evidence, the inquiry found significant price differences between software, hardware and digital media in Australia compared with elsewhere.
In one case, MPs were told, it would be cheaper for someone to fly from Australia to the US, purchase software there, then fly back again, than to buy the software in question in Australia.
Industry bodies indicated that high wage and rent costs, the small size of the market and rigorous warranty protection costs all contributed to higher local prices, but the report said despite their submissions it was “difficult to avoid the conclusion that these practices amount to international price discrimination to the clear disadvantage of Australian consumers and businesses”.
The report surveyed more than 150 professional products and found a mean price difference of 50%.
Adobe products showed an average difference of 42%, while Microsoft’s were 66% more expensive and Autodesk’s 51% more expensive.
Specialist software designed to help disabled people, such as braille readers and screen readers, was also found to be significantly more expensive in real terms within Australia.
Evidence submitted and collected by the inquiry found downloaded music was 52% more expensive in Australia, while ebooks had an average price difference of 16%.
Games were 84% more expensive on average, and the committee noted: “In some cases price disparities in relation to digitally delivered games are so large that it can be substantially cheaper for Australian consumers to purchase a physical copy of new release games from a UK-based online store and have it shipped 15,000km to Australia.”
The committee heard that high prices and limited availability of copyright material could generate infringement and undermine the copyright system, in part by creating a mindset among consumers that prices were unfair and that infringement was therefore justified.
MPs were also critical of IT companies and industry bodies, whose written submissions were “of limited benefit to the inquiry and in the committee’s view did little to address consumers’ concerns”.
Earlier this year the committee took the unusual step of summonsing three executives from Apple, Adobe and Microsoft after invitations to attend were repeatedly declined.
It also noted reluctance by some universities to participate in the process “for fear of jeopardising ongoing and future contract negotiations with major IT vendors”.

[Kym]

http://www.aph.gov.au/Parliamentary_...ter2.htm#anc10

[top]Warranties

2.27 The issue of warranties for IT products arose in various contexts in the course of the Committee’s inquiry. Australia’s national warranty regime was raised as a factor in explanations for the higher cost of IT products in Australia, and it was also suggested that overseas IT purchasing can involve inadequate or no warranty protection for consumers. Warranties in the sense of consumer protection are examined in this section. Warranties are cited by business as a cost, and this is considered in chapter 3. Options for international warranty harmonisation are considered in chapter 4.
2.28 Australia has a national consumer protection regime. Under the Australian Consumer Law (ACL) which is located in schedule 2 to the Competition and Consumer Act 2010, consumers have the same protections, and businesses the same obligations and responsibilities, across Australia. The ACL, in effect from 1 January 2011, provides consumers with a comprehensive set of rights in relation to the goods and services they acquire.[17]DBCDE told the Committee that:
Warranties in Australia can be more rigorous and provide greater protections than those in other countries. The Australian Consumer Law, a schedule of the Competition and Consumer Act 2010, can provide different and in some cases stronger protections than that found in US or UK law.[18]
2.29 Mr Matthew Levey of consumer organisation Choice noted that some importers of IT products maintained ‘extremely strong refund/return polic[ies]’ and that such practices show that ‘it is quite possible to operate here profitably, sell a lot of products and still offer significant price savings’.[19] Some concerns were expressed in submissions about the limitations of warranties for products purchased overseas, in terms of consumer risk and the provision of service and repair for such goods, and a need to provide a greater degree of certainty and security for consumers.[20]
2.30 The Australian Communications Consumer Action Network (ACCAN), a consumer organisation focussed on the communications sector, argued that uncertainties about warranty protection inhibited consumers from seeking to access lower prices overseas and was consequently a factor in maintaining higher IT product prices in Australia:
I think it is something that can prevent consumers from shopping overseas and accessing those lower prices, which we know that some people are doing anyway. … The more businesses realise that Australians are doing this, I think that could have an impact in terms of competition and bringing prices down. However, we are concerned about whether Australian Consumer Law or any consumer law will apply to those purchases. It is very hard; there are no legal examples we can really refer to, to our knowledge, in these cases.[21] Not every consumer at the moment feels competent about shopping online. … Knowing that there is an international warranty for a purchase can go to help ease some of that stress and nervousness.[22]
2.31 The Committee is also aware of consumers’ concerns about warranties for the increasing variety of goods (physical and digital) bought online, including for example the devices and software upgrades bought by Australians living with disability. The Committee acknowledges that consumer concerns about warranty and ongoing servicing costs can have a role in purchasing decisions.

[ameerat42]

To quote a famous carpenter, "I doubt it."
But I will paraprase him and say, "I doubt it very much!" And I will still shed a bitter tear.
Sounds good, though.
m.

[Kym]

I'm more concerned that we can get international warranties. That would be good.
Also if we could have international pricing on Adobe software, given it's downloadable, and the cost should be the same globally

[Dazz1]

Having just experienced a price difference of over $400 to under $150, comparing "normal" retail to grey market, for a lens, I am going to say something needs to be done, fer sure !

[Warbler]

Just another political announcement prior to an election. No real action plan, just motherhood statements. I'll believe it when I see it. Sorry by my cynical nature when it comes to politicians tells me that this will never happen.

[seastorm]

Just another political announcement prior to an election. No real action plan, just motherhood statements. I'll believe it when I see it. Sorry by my cynical nature when it comes to politicians tells me that this will never happen.

Yeah, I'm with you on this one. Can't really see any change.

[Mark L]

Just another political announcement prior to an election.

Parliamentary Committee with members from all party's. Not much to do with elections.
They couldn't really come up with any other conclusions. We're being ripped off. They can't really do much about the prices though. Can't companies charge what they like for their product? If no one buys at that price, then the price may come down.