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Aussies paying five times more… or 50% more July 2, 2008

Posted by Glenn Irvine in Commentary, Media.
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I saw this article in yesterday’s news, and with the Aussie Dollar almost on par with the Greenback at the moment (95.88c in the dollar at the time of posting), thought I would dip my toe in the water and see what the price difference between a single user of Notes is between the US and Australia.

Needless to say I was surprised to see a 50% price differential (Not favouring Australians).

Come on IBM… we love the software, and appreciate the fluctuations of international exchange, but this is a bit much.

Regards,

Glenn Irvine
glenn.irvine@thelotusposition.net

http://www.news.com.au/technology/story/0,25642,23945533-5014108,00.html

Aussies paying five times more for software

By Andrew Ramadge, Technology Reporter July 01, 2008 12:01am

SO much for the “global village” — Australians are being charged up to five times more to download the same products as customers in the US.
Digital distribution, hailed as the future of software sales, is touted as being cheaper and more convenient than regular shopping as users bypass storage and shipping costs by downloading programs directly to their computer.

But the online stores of companies like Adobe and Electronic Arts are charging users different prices to download video games and graphics software depending on which country they’re in.

If a user visits the Adobe website from a computer in Australia, they are charged as much as $1000 extra to download the same program as customers who log in from the US.

Similarly, gamers who visit the Steam and Electronic Arts websites are charged up to five times more to download popular titles like Medal Of Honour: Airborne — which Australians can buy and download for $99.95, while users in the US pay just $21.15 ($US19.95).

The Australian Competition and Consumer Commission said it was powerless to stop the practice of regional price discrimination, as it does not contravene trade laws.

“There is no prohibition on price discrimination in the Trade Practices Act 1974,” said an ACCC spokeswoman.

“For example, it is not illegal for a supermarket chain to charge more for a particular product (such as soup) in a more affluent area where there may not be as much competition than it does in an area of greater competition, or less affluence,” she said.

… [more]

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