Choice attacks Apple over local iTunes prices

Consumer group Choice has attacked Apple over the prices in the Australian iTunes store, saying that they are as much as 50% higher despite the Australian dollar remaining above parity.

“We believe that if you’re buying digital stuff, be it software or whatever, there should not be outrageous price differentials between similar territories,” Choice spokesman Christopher Zinn told The Age.

Prices are set at $US0.99 per song for United States customers, while songs in Australia are usually priced at $1.69.

“These big guys say there are local licensing, marketing, taxes that explain the difference but we believe that there should be a convergence in terms of prices for digital products because that’s the whole point – it can be delivered around the world at the speed of light at roughly the same cost.”

Apple replied by saying the prices are appropriate based on agreements with local providers, but Zinn said that while agreements to make prices differ, the issue was “more to do with market power”.

“It seems hard to believe that publishers in this country are rapacious and have managed to screw much better deals out of iTunes than anywhere else in the world apart from Switzerland.”