* Posts by Rem

1 post • joined 22 Mar 2013

Microsoft, Adobe, wilt during Australian price gouge grilling


These monopolists can be brought to heal by government

There is a way around but I suspect the government wont do a thing in Australia.

As you can read http://en.wikipedia.org/wiki/Monopsony Australia has a single buyer situation for important pharmaceuticals through the Pharmaceutical Benefits Scheme. Basically the government states that if you want to be listed on the Scheme (making it cheaper for consumers) then we will determine the price. Typically drugs cost one-third less in Australia thanks to the government using its monopsonist power.

While I squirm at government intervention in the market place, here as MS and Adobe are thumbing their noses at government, I say there is a clear and present abuse. So government, simply like for the pharmaceuticals, say, if you want to sell in Australia, then reduce your prices. Their claims to "investment" is BS and fades in comparison to the collective community cost of the creaming they are practising.

Of course, I am whistling in the wind as the government does't give a hoot for the average consumer - look what it does with motorcars for example to keep an anachronistic industry going.


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