Australian Consumers Pay Up to 100% More for iPhones, iPads, Computers
The results of a long-awaited parliamentary report concerning the price gouging of technology consumers in Australia revealed recommendations of lifting of parallel import restrictions, ban on geo-blocking which stop Aussies from buying tech goods overseas and the official monitoring of prices for IT goods. Smartphones, tablets, computers, software and gaming devices were apparently overprices in the Australian market.
The Parliamentary committee also discovered that Australians pay an average of 50 to 100 per cent more than the average American consumer. The committee has strongly suggested a repeal of a section of the Competition and Consumer Act 2010.
The tech goods pricing inquiry was conducted by a committee in House of Representatives. The committee was tasked to investigate the alleged "rip-off prices" that Australian consumers pay for Apple's iPhones, iPads, other smartphones, computers, notebooks, software and gaming devices.
The committee also investigated the consequences of higher prices of tech goods to businesses in Australia and what the high costs meant to the ability of a Australian business to compete with the rest of the companies in the world with lower costs.
Taxpayers in Australia also carry the burden of high-cost technology used by the government. The Parliamentary investigation began in May 2012 when angry Australian consumers complained of exorbitant prices of gadgets and tech products from Apple, Microsoft and other device makers.
The inquiry also gained traction when the IT corporate sector in March 2013 called for Apple, Microsoft and Adobe to appear before the committee and explain their prices in Australia.
Nick Champion, South Australian Labor MP and committee chair, said the committee had discovered that IT companies and copyright holders charge consumers in Australia an extra 50 per cent. The charging practice on consumers was known as "Australia Tax."
Mr. Champion said that while companies should have the freedom to set their own prices, the committee believes there are many ways Australia can take to become competitive in IT markets which can help reduce prices in time.
The committee also recommended a consumer education campaign to help Australian consumers find cheaper gadgets and tech goods online. Other recommendations include reforming the Competition and Consumer Act and the Copyright Act to promote innovation and protect consumer rights.
The high prices of tech goods greatly affect Australian students, the disabled and those with low income. The committee wants to reduce this impact to consumers as the Australian Communications Consumer Action Network (ACCAN) calls for the reduction of prices.
The ACCAN has urged both the Australian Labor Party and the Coalition to commit to an IT procurement policy to be led by government in order to reduce prices of tech goods.