Tuesday, 24 July 2012

Federal MP slams Adobe in pricing enquiry

The federal Labor backbencher who set off an inquiry into discrepancies between Australian and US technology prices has blasted US software house Adobe Systems for not participating.

Ed Husic yesterday said he was "absolutely urging" Adobe to state its case in what he calls a price-gouging inquiry, as the Californian firm had been cited often in public submissions.

The House of Representatives inquiry is examining rip-offs consumers said they faced when buying computers, mobile devices and software in Australian outlets and online, compared with US pricing.
The inquiry received 75 submissions covering concern about the pricing of games, computer operating systems, hardware and software.

Australian Commercial and Media Photographers, representing 386 members, claimed "what can only be described as price gouging across the entire spectrum of hardware, software and consumables used by" the photographic industry.

An upgrade from Adobe CS5 Design Premium to CS6 Design Premium cost $1137 locally, but $US749 in the US, while moving from Photoshop Extended CS5 to Extended CS6 cost $307 and $US199 in the US, it said.

Adobe did not return a call yesterday.

Mr Husic said Adobe "did make sounds that they would look at submissions and respond, but we don't know what they're thinking".

"The view I constantly get with consumers is there's a huge degree of frustration and anger and when they try to engage with Adobe they constantly get a company line that never offers a better understanding as to why the prices are different."

The committee's public hearings begin on Monday in Sydney with an initial focus on pricing of music downloads and e-books.

Consumer watchdog Choice has told the inquiry Australians were being slugged 50 per cent more than US consumers for music downloads, PC and console games. The Australian reported last year that music bought through Apple's iTunes store typically cost 30 per cent more, when the Australian dollar was worth $US1.05.

Mr Husic defended the committee's decision to hold a private confidential meeting with Apple ahead of public hearings, saying it was not unusual for parliamentary committees to do so. He hoped Apple would participate in hearings, as it had "a very good story" to tell.

"They've started to align their (Australian) prices, which is a bit more than some of the others have." He was disappointed, he said, that other tech companies had not participated.

"It has been consistent with what I've seen in the last 12 months that if they stonewall the issue will go away, and I don't think it will," Mr Husic said.

He commended Microsoft on its participation to date and said search engine giant Google had "not come into the frame at all".

In its submission, Microsoft cited the GST, the smaller Australian market, higher labour costs, regulation, marketing and advertising as reasons why its products cost more locally.

Mr Husic said inequitable pricing had ramifications for Australia's free trade agreements. It was now permissible for overseas online stores to use geo-blocking to stop Australian consumers from buying online.
The Australian Industry Group, representing 6000 businesses, told the inquiry product pricing was a matter for the market and general competition and consumer law.

It said that governments could relieve pricing pressure by monitoring the cost of doing business in Australia, including the cumulative regulatory burden on business, and taxation levels.

No comments:

Post a Comment