Adobe caves to Public Pressure and reduces Software Prices in Australia

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Old 02 February 2013   #1
Adobe caves to Public Pressure and reduces Software Prices in Australia

Well, well. It seems that a little public pressure - and negative press - can change a Software Giant's pricing policies:

http://afr.com/p/technology/adobe_c...XRGNIr S1M2fNN

Those in Australia crying about Adobe's inflated prices can rest easy now. The prices have been reduced.

US software giant Adobe has bowed to public pressure and slashed the price of some of its products for Australian customers a day after being ordered to front a parliamentary committee hearing in Canberra. The move will be seen as a partial victory for consumer advocates and the politicians behind the Federal IT Pricing inquiry, which has been investigating allegations that US technology companies price gouge Australian customers.
 
Old 02 February 2013   #2
Good news for those in Australia.

No change for those everyone else. The mugging will contnue in countries where Adobe are not being hauled before parliamentary committee hearings.
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Old 02 February 2013   #3
Doesn't seem like they caved so much as they were forced to.
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Old 02 February 2013   #4
Originally Posted by darthviper107: Doesn't seem like they caved so much as they were forced to.
how is it forcing when they can't justify clearly abusive regional pricing discrepancy.
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Old 02 February 2013   #5
Because they didn't want to but the government made them? Sounds like being forced to me
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Old 02 February 2013   #6
Originally Posted by darthviper107: Because they didn't want to but the government made them? Sounds like being forced to me


Except the Australian government DID NOT force them to lower their prices. Read the article again. HINT: It's in the very first sentence.
 
Old 02 February 2013   #7
Originally Posted by Dillster: Good news for those in Australia.

No change for those everyone else. The mugging will contnue in countries where Adobe are not being hauled before parliamentary committee hearings.


Well not really, read the article-

But businesses will continue to be charged inflated prices and more traditional software sold through retailers will be offered at the same rates.


There's no reduced price for any of their retail products according to the article. They are only lowering prices for their online subscriptions that allow access to their online version of the full software. You are still paying for the online subscription, $49.99 per mounth for access to all softwares, $19.99 for individual software! Note these prices are in austrailian dollars I do believe. There are other reductions in the cloud membership but that's about it. There's no change in price for the retail version software for individual's at home and businesses.

There's a win if you are a company or individual using the online versions of the software but I believe many would probably want to actually own the commercial retail license version of the software.

Last edited by Darkherow : 02 February 2013 at 06:23 PM.
 
Old 02 February 2013   #8
Originally Posted by fuss: Except the Australian government DID NOT force them to lower their prices. Read the article again. HINT: It's in the very first sentence.


If the government wasn't involved they wouldn't have changed their prices just because the public didn't like the prices
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Old 02 February 2013   #9
This is actually good news for everybody IMO.
They could have made a stand for it, the government didn't "force" them to do anything, they were only told they'd be called for a hearing, and their unicity means the sales lost, especially in such a small market, would have been insignificant compared to a corporate precedent, but they decided instead to forego arguments and litigations and cut "the people" some slack.

Given that Australia isn't the only place with an absurdly artificial market, and Adobe isn't the only company taking advantage of it, the hope is enough people and their representatives will jump on board and move it along to a fairer global market for software.

I think it's important to notice in this case that "the government" didn't wake up deciding to do something one day. This is a case of the government acting directly in line with electorate's feelings after a concern was voiced, and a concern from a category with little voting power and whose concerns are normally ignored.

People complained, government took notice and told a private entity that they'd like to have a chat to make sure there's good reason for the inflated prices, company decides to do the right thing instead of turning litigious.
If you lived here and knew something about the local software industry and its workings, Adobe could have simply stalled the lot and basically scoff at it and not even rock up for a hearing, or open doors for an internal inquiry (what Apple does when it uses Oz to circulate some six billions and paying less than 1% taxes on it, to then literally lock inspections and inquiries out the door).

Given Apple and Google's (and others') behaviour here (major evasion and a downright blunt refusal to even talk to the local authorities, completely above-the-law behaviour), for the first time in my life, I have to give credit to Adobe for being decent folks.
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Old 02 February 2013   #10
Originally Posted by ThE_JacO: This is actually good news for everybody IMO.
They could have made a stand for it, the government didn't "force" them to do anything, they were only told they'd be called for a hearing......


Yes but Adobe had to know it would result in bad press for them, as their pricing practice justifications would very likely have been debunked. They would also be aware the EU has to be following this too as many complaints have been made about download and online service pricing.
Mind you, I'm not sure if Adobe are still obliged to appear before the committee or if the sweetener they threw means they can now avoid it.
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Old 02 February 2013   #11
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