Linked by Thom Holwerda on Fri 22nd Mar 2013 09:56 UTC
In the News If you don't live in the US, this is a pretty common source of irritation: US companies charging crazy markups on products sold in Europe, Asia, Australia, South America, and the rest of the world. The Australian government has had enough of this practice, and started an inquiry into the matter. Yesterday (or today? Timezones confuse me) Apple, Microsoft, and Adobe had to answer questions in a public hearing.
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RE: Costs more
by mikeinohio on Sun 24th Mar 2013 00:55 UTC in reply to "Costs more"
mikeinohio
Member since:
2010-02-21

While their might be some arbitrariness in the pricing structure of these companies products in various countries, most of the disparity in the prices probably reflects the disparate reality of doing business in the various countries.

The European, Asian, and Australian economies tend to be much more taxed and regulated than the American Economy. The companies that do businesses there comply with the regulations and pay the taxes. But, as all companies do, they pass the cost along to the consumer. That includes the cost of frivolous European Union lawsuits too.

If consumers value their standard of living, they need to grow up and understand that the is no something for nothing. The European Union has already fined Microsoft billions of euros over its alleged browser monopoly. If that number is divided by the number of Windows licenses sold in Europe, it comes out to several euros per license. That is the cost of just one example of European Union litigious nonsense.

Reply Parent Score: -1

RE[2]: Costs more
by lemur2 on Sun 24th Mar 2013 06:05 in reply to "RE: Costs more"
lemur2 Member since:
2007-02-17

The European, Asian, and Australian economies tend to be much more taxed and regulated than the American Economy.


Australia is a socialist democracy, so in Australia one does pay higher taxes as an individual, but company taxes aren't so high. Companies do pay company tax, however.

For your taxes in Australia, you do get roads and infrastructure, water, sewage and electrical distribution, public transport, education, welfare and decent health care for all citizens largely paid for from the public purse.

This takes soooooo much away from ones wages that Australian standard of living ends up only second best in the world (to Norway in one survey and Sweden in another), all things considered.

http://en.wikipedia.org/wiki/List_of_countries_by_Human_Development...

http://www.mapsofworld.com/world-top-ten/world-top-ten-quality-of-l...

So much for American theories of "small government low taxes". It turns out that that policy is meant to benefit only the top 1% of rich people and the large corporations.

http://www.alternet.org/corporate-accountability-and-workplace/16-g...

If consumers value their standard of living, they need to grow up and understand that the is no something for nothing. The European Union has already fined Microsoft billions of euros over its alleged browser monopoly. If that number is divided by the number of Windows licenses sold in Europe, it comes out to several euros per license. That is the cost of just one example of European Union litigious nonsense.


If consumers do indeed value their standard of living, I would contend that Australia has got it right and America has not:

http://www.crikey.com.au/2011/03/04/its-official-australia-is-the-n...

America might be a better place to operate if you are a large corporation, but that fact demonstrably has very little to do with the standard of living for consumers.

Edited 2013-03-24 06:21 UTC

Reply Parent Score: 3

RE[3]: Costs more
by mikeinohio on Sun 24th Mar 2013 14:13 in reply to "RE[2]: Costs more"
mikeinohio Member since:
2010-02-21

Australia is a socialist democracy, so in Australia one does pay higher taxes as an individual, but company taxes aren't so high. Companies do pay company tax, however.

For your taxes in Australia, you do get roads and infrastructure, water, sewage and electrical distribution, public transport, education, welfare and decent health care for all citizens largely paid for from the public purse.


I do not disagree with that. I am just saying that government is a zero sum game at best. If the government gives you free or subsidized something; it is driving up the cost of something else to pay for it.

This takes soooooo much away from ones wages that Australian standard of living ends up only second best in the world (to Norway in one survey and Sweden in another), all things considered.


I am not sure how to explain that without giving the politically correct a heart attack. Let me just say that if the United States had the same demographics as the countries you mention, it would be in first place.

So much for American theories of "small government low taxes". It turns out that that policy is meant to benefit only the top 1% of rich people and the large corporations.


Actually the small government low taxes model worked quite well in United States until the beginning of the 20th century. The problem is that the one percenters or the elite political ruling class as I call them are using the power of government through taxes and regulations to secure their positions and enrich themselves. Or, to put another way, the 1% are using big government to their own benefit and to the detriment of the 99%.

If consumers do indeed value their standard of living, I would contend that Australia has got it right and America has not:

http://www.crikey.com.au/2011/03/04/its-official-australia-is-the-n...


Again, If you factor in the demographic differences between the countries, you will reach a different conclusion.

America might be a better place to operate if you are a large corporation, but that fact demonstrably has very little to do with the standard of living for consumers.


I would disagree. I would say that the lower prices afforded by the small government/ low tax model leaves the consumer with more money for the necessities and luxuries of life.

Reply Parent Score: 1

RE[3]: Costs more
by Tuishimi on Mon 25th Mar 2013 14:52 in reply to "RE[2]: Costs more"
Tuishimi Member since:
2005-07-06

So what are the taxes levied on software and other products from other countries?

Reply Parent Score: 2

RE[2]: Costs more
by cropr on Sun 24th Mar 2013 11:58 in reply to "RE: Costs more"
cropr Member since:
2006-02-14

This argument would make sense if Microsoft has increased the European prices after getting the fine, but that's not the case. Even before receiving the fine the Eorpeab prices were considerably higher than the American prices. It does not explain that australian prices are higher or that Adobe and Apple have higher prices

Reply Parent Score: 2