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.