Tag: price discrimination

Big Tech taken to task Down Under

strayaTop tech companies are being called to task by an Australian committee that argues the country is getting a raw deal by unfair price discrimination.

Aussie MP Ed Husic moaned to the Australian that by some estimates, prices for Australia can be 60 percent more than in the States. He and the committee will be putting Apple, Microsoft and Adobe on 22 March, according to the BBC. Although the firms have replied in writing, until now they have not bothered to meet any representatives in person.

Although price differences aren’t as drastic in the USA and the UK, there is still a gap – with the only difference usually being in pound sterling rather than the dollar. Depending on what action the committee takes, there is the potential to set the bar on international price differences, and whether they should be altered in line with currency values.

Husic told the Australian that, considering IT is so widely used in both business and consumer segments, prices for hardware and software can “have a major commercial and economic impact”. He said that bringing IT prices down and “easing the bite of price discrimination” should be an “important micro-economic priority”. Of course, convincing conglomerates that tinkering with their margins is a good idea will be easier said than done.

The bigger picture, however, will be that if pricing is more competitive, consumers and businesses won’t hesitates as much to buy – even in challenging economic conditions.