The ACCC won’t be opening an investigation into Apple’s ebook pricing in Australia, despite an anti-trust finding against the tech giant regarding manipulation and collusion with publishers to raise digital book pricing in the US.
The US district court anti-trust decision found Apple had willingly colluded with US booksellers to raise prices in a bid to thwart Amazon’s low price strategy. Strategies such as this collusion are illegal under US laws. Apple, however, has indicated it will appeal the ruling.
According to a report in the Australian Financial Review, an ACCC representative said the conduct of concern happened in the US, and was being dealt with by the US regulator.
The agency did note that it would monitor developments to see whether a local investigation is warranted.
The calls for an investigation came from independent senator Nick Xenophon who last week asked The Fin whether the tech giant’s ebook anti-trust behaviour in the US meant it was also “ripping off” Australians.
Book publishers in Australia generally use an agency pricing model, meaning they can dictate the price digital books are sold at.
Despite the ACCC’s decision against an investigation, Apple still faces scrutiny in Australia on a number of fronts. In particular, the company was called before a parliamentary pricing inquiry earlier this year to justify its local pricing for digital goods such as movies and music compared to other countries.
Testifying before the committee, Apple’s local MD, Tony King, said pricing decisions were largely in the hands of media companies - music and video rights holders - and the cost of soft goods is usually negotiated on a territory-by-territory basis, rather than at a global level. (Microsoft's local MD, along with Adobe's, also appeared before the committee.)
Apple, along with other tech companies such as search giant Google, has also faced criticism for its tax minimisation practices, which sees the company shuttle sales revenue – and therefore profits – internationally through low corporate tax jurisdictions rather than pay Australian corporate tax rates.
Resellers, as reported today by CRN have also criticised the company, with one former reseller claiming Apple prioritises its own sales channel – stores and online – over that of its independent partners.
Last week French authorities opened an anti-trust investigation and raided the company, after a failed reseller claimed his company had been crippled by Apple restricting supply of hot-selling products such as the iPhone and iPad. That investigation is ongoing.
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