[doug363]

I get the impression that state laws are significantly more uniform in Australia than the US... IMHO, it's more that distributors are "used to" a lower AUD, have exclusivity/best price guarantees, and so can prevent anyone importing goods (at retail scale) that undercuts them. They've got their business model worked out on the basis of higher prices, their customers are used to higher prices, and they make arguments like "hey, well, we ran a bit of an advertising campaign and submitted your product for regulatory approval". Perhaps true, but not necessarily worth the extra "tax". See the story about how the digital price for Australian buyers of The Witcher 2 got increased because the Australian distributor made a fuss: http://www.kotaku.com.au/2011/05/why-does-the-witcher-2-cost...

[jeza]

There's certainly that factor, but then it even happens with the app store. Though what I think happened is that the distributors kicked up a fuss when the iTunes store was made available in Australia, so the record companies made the prices higher. Apple learnt from this experience that they could make the prices higher, so they've replicated it across the board. I guess there's also the possibility that some larger app store developers have been able to convince Apple to make the price differential higher for Australia as well.