Apple has been ordered to appear before Australia's parliament with fellow technology giants Microsoft and Adobe to explain why local consumers pay so much for their products, despite the strong Aussie dollar.
Apple has been accused of excessive secrecy in its Australian operations
Broadening a row between the world's most valuable company and Australian
lawmakers over corporate taxes paid on Apple's operations, Apple executives
were formally summonsed on Monday to front a parliamentary committee in
Canberra on March 22.
"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 Labor 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 Labor government ahead of a September
14 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 U.S. currency around A$1.03.
A 16GB WiFi iPad produced by Apple with Retina display sells in Australia for
A$539, $40 above the price in the U.S., despite the stronger local currency.
Microsoft's latest versions of office 365 home premium cost A$119 in
Australia versus $99.99 in the United States.
IT firms and other multinationals have blamed high operating costs in
Australia including high local wages and conditions, as well as import costs
and the relatively small size of the retail market in the $1.5 trillion
economy.
Failure to appear before the committee as ordered could leave all three firms open to contempt of parliament charges, fines or even jail terms.
Adobe and Microsoft have previously provided separate written statements and submissions to the inquiry. But executives have been reluctant to explain their pricing before a public inquiry.
Apple executives in Australia declined to comment.
"The companies have blamed each other for not appearing. One will say 'we're not going to appear if the other is not going to appear'. So we've cut straight to the chase and said we'll just summons you," Husic said.
http://www.telegraph.co.uk/technology/apple/9862042/Apple-summoned-to-explain-high-prices-in-Australia.html
Failure to appear before the committee as ordered could leave all three firms open to contempt of parliament charges, fines or even jail terms.
Adobe and Microsoft have previously provided separate written statements and submissions to the inquiry. But executives have been reluctant to explain their pricing before a public inquiry.
Apple executives in Australia declined to comment.
"The companies have blamed each other for not appearing. One will say 'we're not going to appear if the other is not going to appear'. So we've cut straight to the chase and said we'll just summons you," Husic said.
http://www.telegraph.co.uk/technology/apple/9862042/Apple-summoned-to-explain-high-prices-in-Australia.html
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