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Adobe To Australians: Fly To US For Cheaper Software

angry tapir writes "It's been a long-running joke that it's cheaper for Australians to get a plane ticket to the U.S. if they want to buy Adobe's Creative Suite instead of paying local prices. But appearing before a parliamentary inquiry into the disparity between IT prices in Australia and elsewhere, Adobe's local chief appeared to suggest just that." Other companies gave their responses to the inquiry as well. Microsoft said they'll simply charge what the market will bear. Apple tossed out a host of reasons for the price difference; its retail partners, digital content owners, exchange rates, taxes, import duties, and an apparent inability to alter the price set by its U.S. parent company.

18 of 255 comments (clear)

  1. Regional licensing agreements? by Looker_Device · · Score: 5, Insightful

    I don't know if this applies to software, but I know that music and movies have been seriously hindered by archaic regional licensing agreements going back to the days when physical media was the only means of distribution. It's why a certain DVD may be available in a certain region at price x, while completely unavailable or at a different price in region y (with a different distributor or even with a completely different edition of the movie/song). This old system has become a HUGE annoyance in the modern streaming era, particularly if you're trying to watch Netflix outside the U.S. (since those movie licensing agreements are still such a goddamned mess, even in an era when streaming crosses every old national and regional border). It's also why I have to import my blu-ray of "More American Graffiti" from the UK instead of being able to buy it here in the U.S.

    This may also explain why these weird prices apply specifically to the standard physical boxed sets of Adobe products, and not the newer cloud versions or student editions (as per the article). It may also explain why Adobe is so reticent to talk about it. If they have some long-standing regional licensing/distribution agreement in Australia, they may be reluctant to bad-mouth their local licensees/distributors (who have jacked up the retail prices for whatever reasons).

    --
    Your political party doesn't care about your rights and only represents corporate interests.
    1. Re:Regional licensing agreements? by L4t3r4lu5 · · Score: 5, Insightful

      All versions of products from all regions, often stripped of any artificial lock-down, are available on a host of file sharing networks.

      Saying that, I'm pretty certain that stating "Buy from the US" can be viewed as a blessing on the Grey Import business. Thanks, Adobe!

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    2. Re:Regional licensing agreements? by ozmanjusri · · Score: 5, Interesting

      I'm pretty certain that stating "Buy from the US" can be viewed as a blessing on the Grey Import business.

      Actually no. Adobe's Paul Robson made that clear. "If you purchase your Adobe product in the US, we’re not obligated to provide you a warranty. We want you to buy from us."

      This is not new to us, it's been going on for years. The gougers have variously blamed retailers, market size, freight costs, warranty differences, rents, taxes, wages, penalty rates and importation and transport costs for their extortionate prices. None of it comes close to explaining their huge markups.

      There are no valid excuses.

      They're overcharging because they can. Because they're being allowed to use geo-blocking to stop Australians from buying from their websites. Because local retail channels are heavily controlled to block competition. Because their customers are no longer being given the options of competing products.

      The market has clearly failed to self-regulate and as a result, deserves government intervention.

      --
      "I've got more toys than Teruhisa Kitahara."
    3. Re:Regional licensing agreements? by green1 · · Score: 5, Insightful

      I have no problem with you charging $50 for that loaf of bread. I do however have a problem if you get laws passed that stop me from going to your store in the next town to buy the same loaf of bread for $1.
      And that's what this boils down to. Large multi-national companies get the best of both worlds. they shop around for the cheapest source of parts, labour, and raw materials from any country in the world. meanwhile they lobby for laws and restrictions that prevent their customers from doing the same. (DVD Region coding combined with DMCA style laws, import tariffs, bogus safety laws that are really industry protectionism in disguise, etc)

      If you want to make your device in China instead of locally to save on money, don't get upset with me when I buy it from the USA instead of locally for the same reason.

    4. Re:Regional licensing agreements? by LinuxIsGarbage · · Score: 4, Informative

      Also most online UPSes produce a sine wave, where cheap standby ones generate a square like wave. Sine wave inverters are of course more expensive.

  2. They don't get it by slashmydots · · Score: 4, Funny

    It's just so darn expensive to rewrite all the software upside down for Australia and the rest of the southern hemisphere. That's the entirety of the additional cost!

  3. Re:enjoy your socialist wonderland, suckers by Looker_Device · · Score: 5, Funny

    If my knowledge of Australia is any indication, they're not socialist. They're either a vast wasteland where people in dune buggies fight over gasoline, or the place where young Einstein learned to party. One of those. Either way, I know they all carry VERY large knives.

    --
    Your political party doesn't care about your rights and only represents corporate interests.
  4. Re:Mail it'? by ozmanjusri · · Score: 4, Insightful

    These companies have agreements with online merchants like Amazon to block sales of US-priced products to Australia. Trying will get you a "This product is not available in your region" message.

    A few people sending packages to friends doesn't make a dent in the gouging.

    --
    "I've got more toys than Teruhisa Kitahara."
  5. Re:what about the inport taxes? and the VAT tax? by rakaz · · Score: 4, Informative

    Longer warranties, import taxes and sales taxes are just costs of doing business. And costs of doing business are passed along to the customer. Did you really expect a commercial company to let higher costs eat into their profit margin? If taxes are being raised, prices go up. If legislation is passed that makes it more expensive for companies to operate, prices go up.

  6. What a load of crap by houbou · · Score: 4, Insightful

    Adobe is just being greedy.. that's all.

  7. Re:what about the inport taxes? and the VAT tax? by rakaz · · Score: 4, Insightful

    In case of Adobe and Microsoft it certainly does not. And they both admitted as much.

    With regards of Apple it isn't as simple. Their hardware isn't much more expensive as in the US and the difference can be explain fairly easy by taxes and increased costs of doing business.

    The iTunes store is a while different matter. Apple has to license the content from local copyright holders and prices are set by those local companies.

    For example take a song created by an American artists. The American record company holds all rights to the song, but exclusively sub-licenses it to a local Australian company for distribution in their local market. If Apple wants to sell that song, it has to deal with the American record company for distribution in the U.S. and deal with the Australian company if they want to sell it in Australia. And the Australian company wants more money from Apple which leads to higher prices.

    Most likely the Australian company is owned by the American record company, so guess where all the profits go to...

  8. No warranty? Not an issue by kimvette · · Score: 5, Insightful

    FTFA: "Adobe’s US software can be used in Australia but not covered by warranty, he said."

    Really? Since when do they have a real warranty on software anyhow?

    --
    The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
  9. Bit** please by dafradu · · Score: 5, Interesting

    Australia Adobe store - Creative Suite 6 Master Collection - US$ 4,530.00
    Brazil Adobe store - Creative Suite 6 Master Collection - US$ 5,055.00

    Brazil, where a car made here is sold for R$ 56.210, and the same car, but with more optionals, is exported to Mexico (over 7000 Km away) and is sold there for R$ 25.800. Take that Australia!

  10. Re:You dirty rotten criminal! by Looker_Device · · Score: 5, Funny

    Fortunately, this particularly blu-ray was region 0, so there was no need for me to become an evil criminal to view it. I have, however, ripped many a tag off a mattress and jaywalked more than once in my life. So I do have a bad-boy side.

    --
    Your political party doesn't care about your rights and only represents corporate interests.
  11. Re:Steam pricing could use some looking at as well by ledow · · Score: 4, Insightful

    Except the UK has VAT too, so there's your argument blown out of the water.

    What is it that the US has against VAT? You have sales taxes etc. instead that perform the same purpose. Do you even understand how VAT works (i.e. it only really affects the end-consumer and not the manufacturer or any of the businesses involved in supplying the product)?

    I think it's a blanket hatred of something that you don't understand and that you think you have no equivalent of. Clue: Almost all developed countries in the world have the same amount of taxation on the average person. The exceptions are those with blanket-taxation rates and simplified taxation systems that actually tend to lower overall taxation.

    You can whine about the TV Licence "tax", road "tax", VAT, and everything else that you like, the fact is that pretty much everyone pays the same amount of tax in all countries.

    And hence, the question of why the UK software prices differ from Europe's (literally 30 miles south of us) so vastly is just as important as why Australian prices differ from the US (in fact, more so). And none of it can be attributed to any one tax that's not present in the other country. In fact, almost all of it can be attributed to just one thing - the people buying it don't complain enough.

  12. Re:Mail it'? by mark-t · · Score: 4, Informative

    Didn't someone buying cheap text books marked for "outside US only" and selling them in the US lose in court?

    Initially, yes. But it was overturned by the supreme court.

  13. Shopping trips are cheaper by pablo_max · · Score: 4, Informative

    Seriously. There are organized trips now to the US. Not just for TVs and games and stuff like that.
    People will fly to US and buy their entire kitchen set. (Most can work both 110v and 220v now).
    Even after paying the shipping container and the VAT, it is still significantly cheaper than buying in Australia.

  14. Re:time to go Free/Open Source by Overzeetop · · Score: 5, Funny

    Actually, I've heard that nearly all open source sells in Australia for double what I pay for it in the US. It's everywhere, it tell you.

    --
    Is it just my observation, or are there way too many stupid people in the world?