Adobe cuts prices in Australia following price-gouging probe

The company has slashed the cost of its Creative Cloud subscription in Australia to match the price charged in the United States.

Lance Whitney Contributing Writer
Lance Whitney is a freelance technology writer and trainer and a former IT professional. He's written for Time, CNET, PCMag, and several other publications. He's the author of two tech books--one on Windows and another on LinkedIn.
Lance Whitney
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Adobe's Creative Cloud pricing in the U.S. and now Australia
Adobe's Creative Cloud pricing in the U.S. -- and now Australia. Screenshot by Stephen Shankland/CNET

Adobe Systems has trimmed the cost of its Creative Cloud suite in Australia following complaints that it's been overcharging customers there.

In a statement seen by The Australian Financial Review, Adobe said it has slashed the monthly and annual subscription costs of Creative Cloud to match the prices paid by U.S. consumers. The company's Australian Web site shows the new prices already in effect.

New and current customers in Australia will pay 49.99 Australian dollars (U.S. $51.55) per month for an annual subscription, compared with 62.99 Australian dollars previously. Those who subscribe on a monthly basis without a subscription will pay 74.99 Australian dollars per month, down from 94.99 Australian dollars previously.

Adobe confirmed the price drops in a statement sent today to CNET:

As Adobe continues to attract membership to its cloud offerings, it is evolving its product offering to provide increased value to subscribers, including new pricing for customers in Australia and New Zealand. Creative Cloud membership pricing in Australia for individuals has been reduced to AU$49.99 on an annual subscription per month for new and current customers, effective immediately.

The price drops follow a probe launched in April of 2012 by Australian lawmakers to determine why local consumers pay more for certain tech products than do people in other countries. Apple, Microsoft, and Adobe have all been called by the Australian Parliament's House Committee on Infrastructure and Communications to appear at a public hearing set for March 22 to explain the price disparity.

Adobe apparently kicked up the storm when it announced last April that Australian customers would pay several hundred dollars more for Creative Suite than would those in the U.S.

Australian lawmakers said at the time they hoped that calling the companies in question to testify might convince them to lower their prices. And the effort seems to be working, at least with Adobe.

The Creative Cloud suite offers customers the usual Adobe desktop products, such as Photoshop, Illustrator, InDesign, and Dreamweaver, but on a monthly or yearly subscription basis.

Clarification at 8:50 a.m. PT to specify that the prices are in Australian dollars.

Updated 12:15 p.m. PT with statement from Adobe.