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View Full Version : Australian Government Recommends Banning GEO-Blocking to Reduce Australian Prices



Bigred
07-29-2013, 12:01 PM
IT Pricing Inquiry recommends a clampdown on geo-blocking to slash the high prices Australians are forced pay for digital goods. (http://www.news.com.au/technology/parliamentary-it-pricing-inquiry-recommends-banning-geoblocking-to-slash-prices-for-aussie-consumers/story-e6frfro0-1226687628779)


Paying too much for digital goods such as songs on iTunes? IT Pricing Inquiry recommends a clampdown on geo-blocking to slash the high prices Australians are forced pay for digital goods.

AUSTRALIANS will be able to buy digital products such as software, games and music dramatically cheaper if the federal government accepts the IT Pricing inquiry report handed down today to clamp down on geo-blocking.

Choice Director of Campaigns and Communications Matt Levey today welcomed the 10 recommendations in the parliamentary Infrastructure and Communications Committee 130-page report into the so-called "Australia Tax", a practice in which companies ramped up prices of digital goods by an average of 50 per cent.

Geo-blocking is the system used to limit your access to the internet, based on your geographic location.

Committee chairman Nick Champion said the inquiry's recommendations reflected a desire for "a more competitive marketplace where consumers have clear rights and where they can shop around".

"Markets have always been segregated geographically," Mr Champion said.

"Why that in the past might have been justified because it was hard to shift goods around the world, in the age of the internet, and the digital download and the National Broadband Network, it's going to become increasingly less able to be justified."

AUSSIES 'AT RISK' OF CYBER ATTACKS

Mr Levey said Choice was particularly pleased that the inquiry had "taken aim at the practice of geo-blocking - putting up the virtual walls that essentially sustain higher prices in Australia".

"If you were to take what's in this report and put that into legislation, we would say that's a great win for Aussies who are copping a raw deal on digital prices.

"But as we know, some inquiry reports find their way into the dusty bookshelves of the parliamentary library and others might find their way into legislation. We certainly hope this will be the second outcome.

"The challenge is really now for politicians to act on it."

Mr Levey praised the committee which demanded representatives of key digital companies Adobe, Microsoft and Apple to front the inquiry and explain the price differentiation.

He said many Australians already used "virtual private networks" to get around geo-blocking but, in doing so, they risked breaking the terms of services of the companies they use.

"There would be many, many Australians who don't have that level of confidence and in fairness it's a legal grey area," he said.

The key recommendations of the report are:

* Removing all parallel import restrictions, giving Australians access to cheaper goods;

* Reforming copyright law to give greater protection to consumers getting around 'geo-blocks'

* Educating consumers on their rights to get around geo-blocks;

* Considering amending the law to make terms of service which seek to enforce geo-blocking void; and

* Considering an outright ban on geo-blocking if other changes don't work.

Mr Champion said the first option was to beef up ways for consumers to work around the practice of geo-blocking, saying banning the practice was "an option of last resort".

"But it does have to be on the table," he said.

In its submission to the inquiry, Choice highlighted more than 200 examples of price discrimination.

Choice found in the case of one Microsoft product, it was cheaper for someone to fly to the US, buy the software and repeat that trip than it was to buy it in Australia.

Read more: http://www.news.com.au/technology/parliamentary-it-pricing-inquiry-recommends-banning-geoblocking-to-slash-prices-for-aussie-consumers/story-e6frfro0-1226687628779#ixzz2aSSi72NG

Does this have a familar ring to any of our friends from down under?

Wolfshade
07-29-2013, 12:18 PM
While it is of interest and highlights issues, I am unsure if this will actually resolve the issue. A savvy company may just lower the cost of the unit price in Australia but then increase the shipping costs as from Europe/North America Australia is certainly remote.

More generally I am unsure what this proposed change has to do with 40k News, wouldn't the Oubliette be a better home for this?

Sly
07-29-2013, 01:04 PM
While it is of interest and highlights issues, I am unsure if this will actually resolve the issue. A savvy company may just lower the cost of the unit price in Australia but then increase the shipping costs as from Europe/North America Australia is certainly remote.

More generally I am unsure what this proposed change has to do with 40k News, wouldn't the Oubliette be a better home for this?

Shipping costs? On downloads?

I would guess that 40k relevancy would be the prices of eBooks, in this case the electronic Codices.

Wolfshade
07-29-2013, 01:42 PM
Oops. Misread that, though the issue isn't unique in Australia, if yuo look at the cost of a lot of the digital downloads they are a fixed number of currency units but because of unit conversion there is a huge difference in price.

eldargal
07-29-2013, 10:16 PM
Good for them.

^Sincere, not dismissive.

daboarder
07-29-2013, 10:24 PM
yeah now we have to see if the stupid government will actually follow through and pass legislation on the matter.

jgebi
07-29-2013, 10:50 PM
Well this is what I want now how to get it? ... would murder help to achieve this?

daboarder
07-29-2013, 11:12 PM
Well this is what I want now how to get it? ... would murder help to achieve this?

Of who? Abbot and Rudd? I don't think that would help. No I think a clean slate with none of the current filth being allowed to stay would be the only thing that would work.

Wildeybeast
07-30-2013, 07:10 AM
We often say that about our government, but they are basically all the same. The only distinguishing feature nowadays is that they wear different colour ties.

Denzark
07-30-2013, 05:32 PM
Good for them.

^Sincere, not dismissive.

It's sad you have to qualify that for the less humourous here...

Marshal2Crusaders
07-31-2013, 06:32 AM
Regulations for the Regulation God!

Psychosplodge
07-31-2013, 07:50 AM
Regulations for the Regulation God!

Red tape for the ledger throne?

daboarder
07-31-2013, 08:57 PM
Regulations for the Regulation God!

GREED & CARTEL'S FOR CAPITALISM......Wait a minute?

Edit: just a side note, do you really think de-regulation is a good thing....given the last few years?

How many bank board members were held accountable for their actions again?

DarkLink
07-31-2013, 09:14 PM
GREED & CARTEL'S FOR CAPITALISM

I think Greed and Monopolies for the Cartels!!! would be more accurate, since monopolies and cartels are very distinctly non-capitalist (seeing as they undermine the principles of fair market competition).

daboarder
07-31-2013, 11:26 PM
I think Greed and Monopolies for the Cartels!!! would be more accurate, since monopolies and cartels are very distinctly non-capitalist (seeing as they undermine the principles of fair market competition).

I'd kinda argue that the inherent drive for increasing profits combined with a lack of oversight (from de-regulations) would inevitably lead to the formation of monopolies and cartel's....but thats technicalities I guess.

DarkLink
08-01-2013, 03:24 PM
Without regulation, yes, but one of the base principles of capitalism is fair trade and competition, so since monopolies and cartels are essentially rackets intended to circumvent both, there actually is a certain limited degree of regulation required to keep capitalism running smoothly. That's a trap that I think both sides of the political spectrum fall into, one assuming that capitalism is bad because it's possible to game the system, and others thinking that complete deregulation is always good.

The Imperial Fist
08-13-2013, 05:35 AM
Don't forget, even if this comes into effect, GW still won't allow independant retailers to sell internationally...

daboarder
08-13-2013, 05:41 AM
....you do realise if the Australian government passes legislation, preventing Importers from artificially inflating prices for the Australian market, that GW either has to comply or not trade here? And we are kinda the third biggest market.

The Imperial Fist
08-13-2013, 06:11 AM
GW could still charge the same prices in their Ozzie land shops and websites, they just wouldn't be able to stop Ozzies from buying from UK GW website. They'd certainly massively inflate overseas shipping if they do, and their rules on independants selling internationally would stay the same. I'm sure they'd find a loophole as the retailer can still sell internationally, GW have just impossed rules on how they sell their goods. GW enjoying taking you guys without the curtesy of lube far too much not to find a way around it.

Wolfshade
08-13-2013, 06:18 AM
The proposed legislation only deals with digital sales not physical sales.

daboarder
08-13-2013, 03:18 PM
The proposed legislation only deals with digital sales not physical sales.

Baby steps wolf,
Today digital publication, tomorrow physical ones, and then, THE WORLD!

Wolfshade
08-13-2013, 04:55 PM
I know, I do get annoyed that a digital sale is differently priced depending on where you are downloading it from, when in reality you are probably downloading from the same server in some tax haven anyways.

For instance 99c things on itunes usa at 99p on uk, currency conversion that is an extra 50%. I know you have the same issues down there.

As for the price shipping to Oz will always make things more expensive the question is what is a "fair cost"

Griffotronmachi
08-15-2013, 09:57 AM
I know, I do get annoyed that a digital sale is differently priced depending on where you are downloading it from, when in reality you are probably downloading from the same server in some tax haven anyways.

For instance 99c things on itunes usa at 99p on uk, currency conversion that is an extra 50%. I know you have the same issues down there.

As for the price shipping to Oz will always make things more expensive the question is what is a "fair cost"

Fair cost? pretty much what people are willing to pay. If they decide to sell it at X and then it in fact sells for X then that becomes the standard and anything less is a bargain.

Wolfshade
08-15-2013, 02:28 PM
What I was getting at is that the shipping cost would greatly vary from company to company. The costs come down with amount shipped (in terms of price per unit) so GW is quite low volume (in terms with other items) so the shipping cost will be relatively high.