Adobe drops prices after scrutiny from Australian MPs

 

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By Reuters and Nicole Kobie

Posted on 12 Feb 2013 at 11:11

Adobe has slashed prices of its Creative Cloud after Australian MPs started an inquiry into why tech products costs more locally than they do in the US.

The price cuts mean Creative Cloud software and membership in Australia will be priced on a par with the US, according to newspaper reports.

"Creative Cloud membership pricing in Australia for individuals has been reduced to A$49.99 on an annual subscription per month for new and current customers, effective immediately," the company said in a statement seen by the Australian Financial Review. The price had previously been A$63. "Month to month pricing was $94.99 per month [and is now] $74.99 per month."

"As Adobe continues to attract membership to its cloud offerings, it is evolving its product offering to provide increased value to subscribers, including new pricing for customers in Australia and New Zealand,” the company added.

In what's probably the first time anywhere in the world, these IT firms are now being summoned by the Australian parliament to explain why they price their products so much higher in Australia compared to the United States

Australian attention

The move comes after Adobe, Apple, and Microsoft were ordered to appear before Australia's parliament to explain why local consumers pay more for their products than US customers, despite the strong Aussie dollar.

Broadening a row between Apple and Australian lawmakers over corporate taxes paid on its operations, Apple executives were formally summonsed today to front a parliamentary committee in Canberra on 22 March.

"In what's probably the first time anywhere in the world, these IT firms are now being summoned by the Australian parliament to explain why they price their products so much higher in Australia compared to the United States," said ruling Labour government MP Ed Husic, who helped set up the committee.

High local prices and soaring cost-of-living bills for basic services are hurting the popularity of the minority Labour government ahead of a 14 September election it is widely tipped to lose, giving political momentum to the inquiry.

All three companies have so far declined to appear before the special committee set up in May last year to investigate possible price gouging on Australian hardware and software buyers, despite the Australian dollar hovering near record highs above the US currency around A$1.03.