Post by Willow on Feb 13, 2013 8:22:29 GMT 9.5
Apple, Microsoft and Adobe asked to please explain IT prices
BY:CHRIS GRIFFITH From: The Australian February 12, 2013 12:00AM 1 comment
yes - we are being ripped off!
IT inquiry chairman Nick Champion Source: The Advertiser
APPLE, Microsoft and Adobe will be forced to explain why they charge Australians up to 50 per cent more than Americans for software and hardware.
Yesterday, the House of Representatives committee on infrastructure and communications said it had issued summonses to Apple, Microsoft and Adobe to explain at a public hearing in Canberra on March 22 apparent inconsistencies in global pricing.
The three firms have been accused of "stonewalling" the inquiry by repeatedly refusing to state their case publicly at the inquiry, instead providing information only in confidence, or general information through industry representatives.
But in their submissions, Australian consumers have at times been openly hostile, seeing little reason for the price differences, particular when buying IT goods online.
Differences in the cost of buying tracks and albums through Apple’s iTunes store, inconsistent pricing of Microsoft’s Windows operating system, and hundreds of dollars difference in the cost of Adobe products such as Photoshop and Design Premium upgrades were examples given to the committee.
The three however were not the only ones singled out. Differences in the cost of notebooks, routers, computer games, hard drives and computer aided design software also were brought to the committee’s attention.
Consumers also showed their frustrated with “geo-blocking”, which stops consumers buying goods online from a company’s US website where the prices are cheaper.
So far, none of the three firms have said who will front the March 22 event on their behalf, but lawyers are expected to play a prominent role, given that legal staff have been attending hearings to date.
Neither Apple or Microsoft yesterday would comment on the issuing of subpoenas. An Adobe Australia spokeswoman said the company had received its summons and would “cooperate with the committee as we have done since the inquiry began”.
Whoever fronts the inquiry will find it difficult to evade questions with committee chairman Nick Champion yesterday saying that under parliamentary practice, the grounds for refusing to answer questions were “limited”.
The only legal excuses were impending civil actions, the possible breach of an oath already taken, breaching a privileged communication, the risk of incrimination and prejudicing impending litigation, Mr Champion said.
Apple, Microsoft and Adobe last year were invited to appear publicly before the inquiry voluntarily, but refused, a stance that drew criticism from both sides of politics.
Mr Champion told parliament in October last year it was not good enough for the IT industry "to simply stonewall the inquiry" while committee deputy chairman, the Coalition’s Paul Neville, said the committee felt it had "come to a point where there's obstruction, avoidance, and evasion".
"Now the ultimate sanction of this sort of thing is to invoke the committee's powers to subpoena people," Mr Neville said.
Mr Champion last year said Apple had made a confidential submission and provided a confidential briefing to members of the committee but has refused repeated written requests to make a public submission or appear before the committee to give evidence. Adobe had offered to appear but only if other companies in the sector appear at the same time.
"Microsoft to their credit made a submission and some further supplementary submissions to the inquiry but have been unwilling to appear . . . and have proposed alternative contributions."
Labor MP Ed Husic, who has been campaigning on the price discrepancy issue said the companies should have given public testimony in the first place.
"Adobe, Apple and Microsoft are just a few firms that have continually defied the public’s call for answers and refused to appear before the IT Pricing Inquiry.
"Getting downward movement on IT prices and easing the bite of price discrimination should be an important micro-economic priority – so I’m looking forward to hearing from these firms about their pricing approaches."
Australian consumer group Choice today welcomed the summonses, saying that Australians paid around 50 per cent more than US consumers for identical music, software, games and hardware.
BY:CHRIS GRIFFITH From: The Australian February 12, 2013 12:00AM 1 comment
yes - we are being ripped off!
IT inquiry chairman Nick Champion Source: The Advertiser
APPLE, Microsoft and Adobe will be forced to explain why they charge Australians up to 50 per cent more than Americans for software and hardware.
Yesterday, the House of Representatives committee on infrastructure and communications said it had issued summonses to Apple, Microsoft and Adobe to explain at a public hearing in Canberra on March 22 apparent inconsistencies in global pricing.
The three firms have been accused of "stonewalling" the inquiry by repeatedly refusing to state their case publicly at the inquiry, instead providing information only in confidence, or general information through industry representatives.
But in their submissions, Australian consumers have at times been openly hostile, seeing little reason for the price differences, particular when buying IT goods online.
Differences in the cost of buying tracks and albums through Apple’s iTunes store, inconsistent pricing of Microsoft’s Windows operating system, and hundreds of dollars difference in the cost of Adobe products such as Photoshop and Design Premium upgrades were examples given to the committee.
The three however were not the only ones singled out. Differences in the cost of notebooks, routers, computer games, hard drives and computer aided design software also were brought to the committee’s attention.
Consumers also showed their frustrated with “geo-blocking”, which stops consumers buying goods online from a company’s US website where the prices are cheaper.
So far, none of the three firms have said who will front the March 22 event on their behalf, but lawyers are expected to play a prominent role, given that legal staff have been attending hearings to date.
Neither Apple or Microsoft yesterday would comment on the issuing of subpoenas. An Adobe Australia spokeswoman said the company had received its summons and would “cooperate with the committee as we have done since the inquiry began”.
Whoever fronts the inquiry will find it difficult to evade questions with committee chairman Nick Champion yesterday saying that under parliamentary practice, the grounds for refusing to answer questions were “limited”.
The only legal excuses were impending civil actions, the possible breach of an oath already taken, breaching a privileged communication, the risk of incrimination and prejudicing impending litigation, Mr Champion said.
Apple, Microsoft and Adobe last year were invited to appear publicly before the inquiry voluntarily, but refused, a stance that drew criticism from both sides of politics.
Mr Champion told parliament in October last year it was not good enough for the IT industry "to simply stonewall the inquiry" while committee deputy chairman, the Coalition’s Paul Neville, said the committee felt it had "come to a point where there's obstruction, avoidance, and evasion".
"Now the ultimate sanction of this sort of thing is to invoke the committee's powers to subpoena people," Mr Neville said.
Mr Champion last year said Apple had made a confidential submission and provided a confidential briefing to members of the committee but has refused repeated written requests to make a public submission or appear before the committee to give evidence. Adobe had offered to appear but only if other companies in the sector appear at the same time.
"Microsoft to their credit made a submission and some further supplementary submissions to the inquiry but have been unwilling to appear . . . and have proposed alternative contributions."
Labor MP Ed Husic, who has been campaigning on the price discrepancy issue said the companies should have given public testimony in the first place.
"Adobe, Apple and Microsoft are just a few firms that have continually defied the public’s call for answers and refused to appear before the IT Pricing Inquiry.
"Getting downward movement on IT prices and easing the bite of price discrimination should be an important micro-economic priority – so I’m looking forward to hearing from these firms about their pricing approaches."
Australian consumer group Choice today welcomed the summonses, saying that Australians paid around 50 per cent more than US consumers for identical music, software, games and hardware.