1800 677 656

Australia threatens US Giants with Geo-Blocking Ban

Australia threatens US Giants with Geo-Blocking Ban

A Marketing article written by Elle Meech
Australia has finally finished a long investigation into the extremely high prices we have on IT goods here in Australia. Changes to the Australian copyright law will now allow Aussie citizens access to cheaper IT hardware as well as software and digital downloads. The changes in the copyright law have come into existence when a parliamentary inquiry found no reason why the prices for IT goods are so expensive for consumers Downunder. 

High Prices in Australia

The inquiry was set to explore why IT prices were so much higher in Australia compared to other places overseas. The probe kicked off last year, and during February US tech giants Apple, Adobe and Microsoft were among those summoned for a public hearing to explain their pricing policies.
Computer product prices are often 50 percent higher in Australia than anywhere else in other developed nations for the very same goods. The US giants claimed that the high prices were due to other factors. Adobe had claimed that their products cost more due to the local packaging and transportation costs, while Microsoft admitted they charge what they can get away with. Apple blamed higher download prices on music and movie right holders and copyright fees.

How to Rectify the Problem

The final investigation report sums up the problem that price differences cannot be explained by the cost of doing business within Australia.
A handful of suggestions have been made in an attempt to rectify the problem. One of the solutions is to remove restrictions on grey market imports and change the existing Copyright Act to secure customers' rights to circumvent technology protection measures. Another suggestion is to educate Australians on circumvent geoblocking and what it means. A ban on geoblocking would also play an important role in the costs of IT goods. There was also mention of creating a right of sale for digital goods.