This is particularly the case for video games,[1] computer hardware, and software but may extend to non-technological items such as cars, designer clothing and banking services.
[2][3] Companies selling non-physical products which are not subject to the rent and labour of a traditional retail outlet have been particularly criticised.
[5] The phrase was first used by Ed Husic, a federal member of parliament, who brought the issue up in the chamber and subsequently advocated for an inquiry into the problem.
The report acknowledged that there were some contributing factors specific to the Australian market which can make it a higher-cost environment for IT vendors compared with other markets, such as Australia's small population and geographical distribution,[11] however the inquiry did not find that these factors were substantial enough to defend the price increases of products such as Microsoft Office, especially if the product is delivered via the Internet.
[13] The report, mentioned in the preceding section, concluded that IT products are more expensive in Australia because of "regional pricing strategies implemented by major vendors and copyright holders".