Originally Posted by erocker
Yes, but what taxes/royalties/premiums/etc. does the non-EU supplier have to pay to the government?
None. They pay VAT (which no one is complaining about) and corporation taxes on profits (do they even do this as an American based company, since the US government will probably want to tax the profits).
Besides corporation tax is actually lower in the uk than the states.
I haven't checked other EU member states, but if corporation tax is lower there, then they can officially reside there and export to the rest of the EU with no additional charge.
Also people should remember that firms can charge what they want as this isn't anti-competitive. It only is if firms collude or monopolise the market. Both are difficult to prove as shown by itunes case. And even if you can prove this, then you can't mandate lower pricing but should somehow improve competitive behaviour or the competition itself. Steam is no way a monopoly when there are hundreds of online stores selling the same stuff for delivery.
Also console RRP/MSRP prices in europe are 59.99 EUR or £39.99. Obviously you get lower prices online due to the competition and only the most demanded games can maintain this price. Also in the UK most PC games actually retail at £29.99 to £19.99. PC game prices and console game prices are very different (i guess due to piracy).
PES 09 has a recommended retail price of £29.99 (currently selling for £17.99) and is one of the most popular games currebtly on the market.
Same game on the 360 or ps3 has a RRP of £49.99 (amazon never sold it at this price though, it was always below £40 and the current price is £24.14)
In addition to all this, prices drop very quickly.
When did the latest installment of Prince of Persia come out on the 360? Already at £17.99 http://www.play.com/Games/Xbox360/4-...a/Product.html
Its still at $59.99 on amazon.com and sub £20 ($30 inc VAT) on amazon.co.uk.