Apple, Microsoft to be grilled over high prices - ABC Online

Updated March 22, 2013 08:58:41

Representatives of three of the world's biggest IT companies will appear before a federal parliamentary committee today in Canberra as it investigates the pricing of their products.

Apple, Microsoft and Adobe will face questioning over claims their products for sale in Australia cost so much more than equivalent products overseas.

The investigation was set up after a long campaign by Labor backbencher Ed Husic, who has accused some information technology companies of "ripping off" Australian consumers.

Committee chairman Nick Champion says the inquiry has heard from many Australian consumers and organisations frustrated at the prices charged for digitally downloaded software, computer games, music, movies, and e-books.

"We've received evidence that big IT companies and copyright holders charge Australians, on average, an extra 50 per cent just because we live here, a practice referred to by consumers as the 'Australia Tax',"' Mr Champion said.

The three companies had earlier refused to appear before the committee, but have been warned if they fail to turn up, they could be held in contempt of Parliament which carries a range of possible penalties including fines or jail time.

Last year, the inquiry took evidence detailing disparities in international pricing.

For example, an Arctic Monkeys album cost $17.99 on iTunes in Australia, but according to the Federal Department of Communications, it cost the equivalent of about $13 overseas.

The movie Toy Story cost $24.99 on iTunes in Australia, but buyers overseas pay only $10.

"In Australia you pay on average 52 per cent more than an American consumer for the same top 50 iTunes songs," said Matt Levy, head of campaigns for independent consumer organisation Choice.

He says Australian consumers should not have to pay so much more.

"We're talking about a product here which doesn't have the same sorts of overheads that industry often talk about in terms of rent, in terms of logistics and distribution," he said.

"It's the same file being downloaded more or less from the same server, but a 52 per cent price difference if you happen to be Australian."

Topics: computers-and-technology, business-economics-and-finance, consumer-electronics, australia

First posted March 22, 2013 08:51:30