Aussies are being discriminated by Apple, Microsoft and Co.
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| Aussies pay double for iTunes compared to elsewhere, says consumer watchdog. |
That’s according to consumer watchdog Choice who told a Parliamentary Inquiry in IT pricing that Aussies pay 51% more for Apple iTunes, 41% more for PC hardware and a startling 88% more for Nintendo Wii Games.
Choice says we are being conned by tech giants like Apple, Microsoft and others into paying well over the odds for IT and tech goodies and have branded them “price discriminators,” in its submission to the parlimentary enquiry.
This discrimination is executed through ‘technological measures,’ such as region lockouts on DVDs and video games, but companies also engage in other sneaky practices like detecting when Aussie consumers are shopping online and charging them higher prices, the watchdog believes.
The price discrepancies between US and Aus pricing on key consumer tech goods – from the iPad to MacBook Air and software like Microsoft Windows as well as Abobe – has been well documented, particularly in light of the recent parity between the two currencies.
The enquiry in to IT pricing set up earlier this year by House of Representatives Standing Committee on Infrastructure and Communications is examining the cost of computer hardware and software, including games, downloaded music, e-books, and pro software, in Australia.
Read The Great Apple Rip Off
Choice cited “one Microsoft software product”, and declared “it would be cheaper to pay someone’s wage and fly them to the US and back twice, and get them to buy the software while overseas.”
In its defence, the tech industry has cited a number of factors for price disparities, including high operating costs rental, labour and transportation, GST and profit margins.
However, the watchdog says these account for just 22-27% of retail prices while the remaining 78-73% comes from the wholesale cost of the goods to the retailer.
“It seems most likely that wholesale costs are higher in Australia due to international price discrimination from large companies,” Choice said in a statement today.
But no one is immune from the rip off prices which hurts consumers and retailers alike. High IT prices create more barriers for people on low incomes or in remote areas, who are less likely to have internet or even a basic computer, the watchdog warned.
The best way to bring Australian IT prices into line with those overseas is to increase competition between suppliers and parallel importers who sell genuine IT products cheaper, the watchdog said in its submission.
Choice also called on the Federal government to investigate whether suppliers discriminating against Australian consumers by region-coding or identifying IP addresses should continue to be allowed.
And even though Gerry Harvey and his High Street mob may not agree, the watchdog also said keeping the GST exemption threshold for imported goods at $1000 will also combat price discrimination.
The IT pricing enquiry is holding a public hearing into issue on Monday July 30 in Sydney. Parties were invited to make submissions to the Committeee by July 06 so it wil be interesting to see if technology giants like Apple, Adobe and Sony attempt to defend their alleged practices.
The digital price divide also prevents businesses from fully engaging in the digital economy, increasing inefficiencies.
