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Apple blames record labels, film studios for high Australian prices

Apple Inc. guilt "old" record companies, film studios and TV channels for Australians pay high prices compared to U.S. consumers for digital downlo...

 

Apple blames record labels, film studios for high Australian prices

Apple Inc. guilt “old” record companies, film studios and TV channels for Australians pay high prices compared to U.S. consumers for digital downloads, as he defended his strategy of price Friday.

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Apple, Adobe Systems Inc. and Microsoft Inc. were grilled by a special parliamentary committee to allegations of price gouging Australian raised by commenters consumption surveys.

software and hardware products to sell in Australia for an average of 50 percent more than their American counterparts, according to a study in 2012 of 186 songs, games, programs and computers your choice, nonprofit group Consumer.

rising cost of living bills for basic services to the popularity of the minority Labour government to undermine the elections of 14 September, it is widely expected to lose, lawmakers consider limiting the ability of companies to fix prices in Australia.

Apple, Adobe and Microsoft executives told lawmakers the price reflects factors including the property of the Australian tax and 10 percent in services, higher labor issues of copyright and the geographical product differentiation.

Tony King, vice president of Apple Australia, New Zealand and Southeast Asia, said the levels of certain software products, such as mini Final Cut Pro was significantly iPad even the United States.

But A $ 19.99 ($ ​​20.87), the price of the Australian Justin Timberlake album “20/20 Experience” at the iTunes Music Store, Apple has about twice the. Charged $ 10.99 to U.S. AC / DC “Back in Black” is marked 70 percent for Australian fans.

King said that the price of digital content is based on the wholesale price set by negotiated contracts with record labels, movie studios and television networks.

“The content industry is still working with perhaps the old notions of borders of countries or territories or markets,” King said, adding that Apple had pushed content owners to lower prices Australia.

why Apple, the leading provider of digital entertainment downloads, could not use his influence to the wholesale price to you, said the king ultimately the responsibility of content providers.

“The cards are in the hands of the people who own the content, it is not in our hands to play,” he said.

“evasive” ANSWERS

The three companies have been accused of obstructing the investigation of the price after they initially refused to send executives to answer questions publicly. Adobe and Microsoft have submitted written observations, while Apple has not responded at all.

committee label some answers senior executives as “evasive” and greeted each other with skepticism.

bone of contention was the need for a so-called geo-blocking, which businesses are Internet users based in Australia to buy products at a lower price on American sites.

Australians have a $ 3,175 ($ 3,300) to pay for Adobe CS6 design and more Web Premium, Americans can buy for only $ 1899.

Adobe Australia CEO Paul Robson said after Adobe Creative Cloud, which can be purchased on a subscription basis A $ 50-per-month, was priced at par with the U.S. States, “the future of how our technology to deliver. “

Committee member Stephen Jones said the subscription software installed” digital handcuffs “on users, allowing them to continue to pay to keep their files.

Board Vice President Paul Neville gave the example of a suite of Microsoft products that are the equivalent of A $ 2,324 to U.S. $ 3,105 in Canada A, A cost $ 2,323 to $ 4,136 and Singapore Australia .

“It seems that what you told us, you pay what you can get away with the market,” said Neville Microsoft Pip Marlow Australia general manager, who denied the charges.

“If we commodity prices too high, consumers are voting with their wallets and go somewhere else, we have a very competitive landscape,” Marlow told the committee in Canberra.