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Investigation Reveals Australians Pay More for Software

Investigation Reveals Australians Pay More for Software

Australia's parliament has launched an investigation on Microsoft and Apple. According to CNET, this came about after a 2011 report showed that Australians are paying more for both companies' software compared to other countries. The corporate finance issue became glaringly obvious when Adobe Systems announced that Australians would have to pay $1400 more for its Creative Suite.

"People here scratch their heads trying to work out why they get fleeced on software downloads,'' said Ed Husic, member of the House of Representatives standing committee on infrastructure and communications who will be conducting the investigation.

The Sydney Morning Herald reports that the companies claim that the reason for the price disparity comes from Australia's tiny market size, the price of establishing support centers and the tax code. According to the source, Husic claims that young people and small businesses were the strongest advocates in encouraging the investigation. For smaller enterprises the costs incurred due to the price differences in software downloads can amount to nearly $10,000.

The Herald went on to say that a Productivity Commission denied the companies' claims that attributed the price disparities to Australia's smaller market due to the fact that the delivery cost of downloading an app was virtually non-existent.