If you’re a person who lives in Australia who has the Internet then chances are you know of the vast disparity in prices between goods available here in Australia and those overseas. For some things a small gap is reasonable, I mean it does cost a bit to ship things here to Australia, but when it comes to things that don’t require shipping (like software) the price gap makes a whole lot less sense. Indeed this point was highlighted when the price difference between Australia and the USA was enough to cover the cost of a flight and still come home with change to spare. For those of us who’ve been dealing with this for years now (thanks Steam!) we have a term for this sort of thing.
We call it the Australia Tax.
We’ve found our ways around it though like using DLcompare for finding cheap games and doing all my major purchases online from overseas retailers. This does mean that we sometimes have to resort to slightly devious ways in order to get things sent to us but the savings we can make because of it are usually worth the effort. I had honestly given up on this situation ever changing as the word from those distributing their products here was essentially that we were willing to pay more and, therefore, should pay more (which, strangely enough, only happens because we used to have no other way of getting the product). It seems that a few people in power have noticed this however and last year they launched an investigation into the reasoning behind the huge price disparity specifically centered on IT goods and the results have just come in.
The Australia Tax is very real and it is quite unjustified.
Most of the recommendations from the investigation are then what you’d expect, mostly more government action and increasing public awareness of the issue. However there were 2 points that seem like absolute gold to Australians, if they ever manage to get through parliament:
- If companies do not agree to lift geoblocking, or to give consumers the tools they need to circumvent it, the committee recommended enacting a ban on geoblocking “as an option of last resort”. It also recommends voiding any law which seeks to enforce geoblocking.
- The committee also wants a “right of resale” law to be created in relation to digitally distributed content. This is an interesting possibility which might allow Australians to resell their old music and ebooks for the first time, among other thing
Getting around geoblocking is a pretty trivial exercise these days, if it can’t be done via the use of a Chrome extension then you’ll need to spend a few dollars on a VPN service although that can sometimes lead to issues of its own. Enacting a law preventing companies from geoblocking in Australia might stop some of the less than savy companies from doing it but realistically I can see most of them hiding behind the cover of “currency conversion” or something similar to achieve the same effect. The last round of inquiries into price gouging were enough to get some of the big players to drop their prices in response so maybe just the threat of that will be enough to get them more in line.
The second point is something we’ve heard a little bit about before although not within Australia’s borders. There’s a few cases in the EU looking to establish this exact legal framework, opening up the opportunity to resell digital only content. Indeed that was one of the better features of Microsoft’s restrictive DRM policies for the Xbox One, something that I’m sure not too many gamers were actually aware of. As someone who’s got dozens of spare game keys due to Humble Indie Bundles and whatnot this is something that I wouldn’t mind having although it ever getting through isn’t something I’m counting on. What the outcome is in the EU will likely heavily influence such a decision.
So it’s great that the government is now aware of the problems facing Australian consumers but now they need to seriously considering the recommendations so that some pressure can be applied to these retailers. Whilst the outcome of most of the recommendations won’t affect the savy consumers much (we already know how to get our way) I know that not all consumers want to do those things and, honestly, they shouldn’t have to. Whether the more out there recommendations get implemented though will be really interesting to see although I get the feeling we’ll be seeing Gerry Harvey in the news ranting about them sooner or later.