Australia’s leading technology companies appear to have gone to ground following the release of the government's key recommendations into IT pricing.
Yesterday, the House of Representatives Infrastructure and Communications Committee released its report into alleged price gouging by the major tech companies in Australia.
If adopted, it will see Apple, Adobe, and Microsoft face several measures which could spell the end of their use of “geo-blocking” (regional restrictions) on the use of their products.
The report found a 50-100% difference in the prices Australians pay for IT software and hardware compared to their US counterparts. In the case of online gaming platform Steam, Australians were being charged up to 300% more.
The inquiry, established a year ago to examine why Australians pay higher prices for IT products compared to other jurisdictions, recommended that Australian consumers be offered more protection under the law when trying to bypass regional restrictions.
When contacted B&T this morning for comment about the findings of the inquiry, both Adobe and Microsoft said they were not willing to comment at this time.
The report recommended the government should educate consumers on how circumvent geo-blocking that has previously prevented them from sourcing cheaper goods in other markets.
It stated that “in many instances these higher costs cannot, even cumulatively, explain the price differences consumers experience in relation to many IT products, and especially those delivered via the internet."
In regard to a possible complete ban on geo-blocking, the report said this should be considered as “an option of last resort, should persistent market failure exist in spite of the changes to the Competition and Consumer Act and the Copyright Act recommended in this report."
However, committee chair Nick Champion has admitted that the Government would not be able to regulate the prices the tech companies charge for their products.
In March, Adobe CEO Shantanu Narayenhe defended the company from allegations of price gouging in Australia saying the Creative Cloud products are charged “appropriately” across the world.
Please login with linkedin to comment
Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. While his mother fortunately survived, he lost his […]
In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]
Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]
Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]
Nova 919’s Ben & Liam breakfast show announced that they’ll be throwing their support behind and raising awareness for a cause very close to their hearts, mental health. On Monday 21 June Ben Harvey and Liam Stapleton will be locked in a purpose-built glass structure, in the middle of Rundle Mall, for an entire week […]
TRENDii has announced TRENDii Ads, a new contextual advertising solution that leverages content and context to promote eCommerce products at scale around the world. TRENDii Ads is user privacy friendly and offers a new way for businesses and brands to target consumers at the moment that they are most inspired to shop. “We believe good […]
ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]