• Great articles on other sites
  • RSS Great articles on other sites

  • Renai's other site: Sci-fi + fantasy book news and reviews
  • RSS Renai LeMay

  • News - Written by on Thursday, September 22, 2011 13:45 - 4 Comments

    Govt intensifies focus on IT price hikes

    news Federal Government agencies including the Treasury and the Productivity Commission are further discussing the issue of Australian price hikes by companies including technology suppliers, Labor MP Ed Husic revealed in Parliament last night.

    Over the past few months, Husic has stepped up his campaign on price hikes by technology suppliers importing goods into Australia, singling out companies such as Apple, Adobe, Lenovo and Microsoft with respect to the issue and raising it with other parliamentary colleagues. The issue was also highlighted by the Productivity Commission in its recent draft report into the nation’s retail sector.

    Speaking in Parliament last night, Husic took the issue further, noting he had discussed the issue with the Parliamentary Secretary to the Treasurer, David Bradbury (the full text of a letter sent by Husic to Bradbury is available online).

    “He advises that Treasury officials have met with the Productivity Commission to discuss issues relating to price discrimination,” said Husic. “The Commission is now further examining this issue as it prepares to bring down the final draft of its review into the economic structure and performance of the Australian retail industry and, most importantly, the Commission will welcome further submissions from the public on the impact of IT price discrimination on them, which can be emailed to retail@pc.gov.au”.

    Husic urged technology suppliers — who, he said had been “notoriously slow or reluctant to deal with this issue transparently or publicly — to make a submission to the Productivity Commission as well. “These firms need to explain why they charge Australian consumers and businesses in a way that they would never dream of doing in their home markets,” the Labor MP said.

    Husic added that since he had started raising the issue in public, a number of Australians had come forward with more information about their experiences with the price hikes.

    Adobe and Microsoft have stated that much Australian pricing for their products was actually set by the local distribution channel. However, Husic said he had been contacted by a channel representative to provide the other side of the story. “The big tech companies tend to blame retailers or distributors, but I actually got an email from an IT sales and repair business in Sydney,” said Husic.

    The email from the Sydney business stated:

    “I agree with you about Australian companies charging more than the parent companies in overseas locations for the same goods. This is a constant gripe. We are constantly getting told by customers what their buy prices are for the same goods purchased overseas.”

    “We are constantly sending this information thru to the sales managers and product managers say, say Canon and HP here in Australia — bugger all response — or some waffle about company confidential and trade practices act.”

    Husic said the channel representative was scared to speak up on the issue, because they believed their company would be placed at a disadvantage from suppliers who would play favourites on the issue. “If this is true, it is an exceptionally serious claim,” he said.

    In another example, Husic said he had been contacted by local post-production audiovisual company Famous By Tuesday which had been charged $12,000 more for buying Autodesk’s Smoke editing system through Digistor Australia, compared with prices in the US. “When [Famous By Tuesday staffer David Barrett] got the bill he was stunned to see that the package did not cost $25,000; it cost $37,000. This was a $12,000 difference at a time when the Australian dollar was valued at US94c — simply breathtaking,” said Husic.

    Husic noted he would be continuing his campaign on the issue. “This is the fourth time I have raised this matter,” he said. “I think Australian consumers are shouldering an unfair pricing burden. And the tech company justification for this practice has either been non-existent or flaky.”

    Print Friendly


    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    1. Anonymous
      Posted 22/09/2011 at 4:14 pm | Permalink |

      It’s sad, but in the end, people will just buy stuff from overseas. Retailers in Australia will suffer in the long run.

      • Eddie.
        Posted 23/09/2011 at 12:25 am | Permalink |

        Yes it is sad Jim,but the price for a certain Radio on Sony Australian web site was $299.On USA site,same Radio $159.Guess where I arranged to but it from.

    2. Danielsanderson38
      Posted 22/09/2011 at 6:21 pm | Permalink |

      they need 2 start a name and shame register. companys have gotten away with it 2 long like acer, cannon , sony and toshiba , if was 2 setup a name and shame register i would get sued . the goverment needs to step up and stick up for the people who pay there wages

    3. Posted 23/09/2011 at 10:52 am | Permalink |

      As a reseller of Autodesk, Adobe and other products in Australia we are also being affected by the high local prices as consumers resort to purchasing from sources outside of Australia even if this contravenes licensing agreements in some cases. Many Technology Companies, including Autodesk and Adobe, set the local RRP here and local reseller margins are derived from this. We strive to provide the best value and most competitive local pricing that’s possible but in many cases are unable to match offshore pricing based on the local pricing available to us.

      We have raised the issue stridently with many of our main Technology suppliers on a number of occasions and feel the disparity is disadvantaging our customers, the local industry and ourselves. It damages our reputation with our clients and we also want to see the issue corrected.

      Andrew – Digistor Pty Ltd

  • Get our weekly newsletter

    All our stories, just one email a week.

    Email address:

    Follow us on social media

    Use your RSS reader to subscribe to our articles feed or to our comments feed.

  • Enterprise IT stories

    • Govt blows $14.4m on Windows XP, Server 2003 support nadella-1

      The Federal Government has paid Microsoft more than $14.4 million for custom support of the outdated Windows XP and Windows Server 2003 operating systems, in a costly move which further demonstrates the extreme cost of running operating systems which are no longer formally supported by their vendors.

    • [ad] Tatts Group optimises business performance with StruxureWare software schneider

      Tatts Group is one of Australia’s largest lottery and gaming companies, operating the majority of lotteries within Australia, as well as wagering, telephone betting and online transactions. Their online transactions make them one of the highest trafficked sites in the country.

    • Legacy health software lands SA Govt in court doctor

      In which the South Australian Government comes up with complex legal arguments as to why it should be able to continue to use a 1980’s software package.

    • Microsoft wants to win you back with Windows 10 windows-10

      The latest version of Microsoft’s Windows operating system will begin rolling out from Wednesday (July 29). And remarkably, Windows 10 will be offered as a free upgrade to those users who already have Windows 7 and 8.1 installed.

    • Qld Govt Depts have no disaster recovery plan brisvegas2

      Two sizable Queensland Government departments have no central disaster recovery plan, the state’s Auditor-General has found, despite the region’s ongoing struggles with extreme weather conditions that have previously knocked out telecommunications and data centre infrastructure.

    • ASD releases Windows 8 hardening guide windows-8-1

      The Australian Signals Directorate appears to have released a guide to hardening Microsoft’s Windows 8 operating system, three years after the software was released for use by corporate customers, and as Microsoft is slated to release its next upgrade, Windows 10.

    • ASG picks up $35m CIMIC IT services deal money

      Perth-headquartered IT services group ASG this week revealed it had picked up a deal worth at least $35 million over five years with CIMIC Group — the massive construction and contracting group previously known as Leighton Holdings.

  • News, Policy + Politics - Aug 4, 2015 16:12 - 21 Comments

    Turnbull revises history on NBN satellite demand

    More In Policy + Politics

    Enterprise IT, News - Aug 3, 2015 16:03 - 5 Comments

    Govt blows $14.4m on Windows XP, Server 2003 support

    More In Enterprise IT

    Industry, News - Aug 4, 2015 16:52 - 1 Comment

    Posse group picks up $5m in funding

    More In Industry

    Consumer Tech, News - Jul 29, 2015 17:14 - 11 Comments

    Telstra integrates Netflix, Stan, Presto into re-badged Roku box

    More In Consumer Tech