The Australian Competition and Consumer Commission welcomes the Australian Democrats decision to support the Government's legislation to allow parallel imports of computer software.*
"The decision removes the monopoly which multinational firms have on the import of software", ACCC Chairman, Professor Allan Fels, said today.
"It will mean that Australian consumers and small businesses will benefit from lower software prices".
The decision adopts the recommendations of a Price Surveillance Authority of 1993 and consistently advocated by the Australian Competition and Consumer Commission in subsequent years.
"The legislation outs consumers and small business interests ahead of powerful interest groups seeking monopoly profits.
"The resistance to this change in the law illustrates how some businesses trumpet the virtues of globalisation but try to stop consumers getting its benefits.
"The ACCC’s reports and price surveys have consistently shown that Australians pay more than overseas consumers for best selling business software and that there are likely to be considerable benefits flowing from the Democrats decision.
The decision will mean amendments the Copyright Act 1968 to permit the parallel importation of computer software should occur. This will allow computer software to be imported into Australia from any legitimate source. It means that distributors, retailers and wholesalers will be able choose where they buy their software whereas previously they have been obliged to purchase from the Australian distributor.
Competition in the supply of computer software will no longer be restricted, allowing lower prices to be realised. ACCC price surveys have shown that prices advertised on Australian websites for popular business software items have been consistently higher than prices on US websites over the last few years. Specifically, in January 2003, Australian prices were found to be 13 per cent higher than prices advertised on US websites.
In addition to the direct benefit of price reductions for computer software to users of home offices and games, much greater indirect benefits will arise as usage increases. Small businesses will face lower business costs and improved availability of software applications. The productivity gains will impact throughout the economy.
The ACCC is disappointed that a similar recommendation for books first made in 1989 has not been adopted by the Senate. Consumers will continue to pay high prices for books, especially popular paperback best sellers.
"It is difficult to see how, after 13 years of debate, the discredited argument that allowing parallel imports of books may result in significant dumping of books written by Australia's highest profile authors could be accepted as a reason for blocking this legislation.
"The possibility of an Australian author being in the precarious position of being threatened by dumping of his or her book from overseas into Australia is one in a thousand. It cannot possibly justify the draconian restrictions on the import of books, the monopoly benefit to multinational publishers, and the ongoing harm to consumers".