Parents of slain Chicago teen attend State of the Union

Updated 12:20 a.m. EST Feb. 13

(CBS News) CHICAGO -- Among the First Lady's guests at the capitol Tuesday for the State of the Union address were the parents of Hadiya Pendleton. The 15-year-old honor student was shot to death, not far from the Obamas' Chicago home -- an innocent victim of the city's gang wars.

Hadiya Pendleton

On Tuesday, two suspects were ordered held without bail.

Chicago detectives flooded the area of the city park where Hadiya was killed last month. They were led to the suspects using surveillance video and interviews with parolees in the neighborhood. Alleged gang members, Michael Ward, 18, who police say has already confessed, and Kenneth Williams, 20, were picked up on Saturday night and charged on Monday.

"They thought the group they shot into included members of a rival gang. Instead, it was a group of upstanding, determined kids, who -- like Hadiya -- were repulsed by the gang lifestyle," said Chicago Police Superintendent Garry McCarthy.

Hadiya's parents, invited to the State of the Union in Washington, were relieved.

Watch: Hadiya Pendleton's mother told reporters her daughter's death "cannot be in vain," below.

"I can't close the book on my child, but I am very excited that the murderers who hurt my baby have been caught," said Cleopatra Cowley, Hadiya's mother.

Ward, the alleged triggerman, has a long criminal record, but the police noted that when he pleaded guilty to unlawful use of a firearm about a year ago, he was given probation and stayed free despite three subsequent arrests.

"This has to stop. Gun offenders have to do significant jail time," said McCarthy.

Tom Byrne, Chicago's chief of detectives, said Illinois' gun laws are undermined by a lack of mandatory minimum sentences for gun violations.

Hadiya Pendleton Update: No bail for two men charged in Chicago teen's shooting death
Before State of the Union, gun violence victims demand action
Accused Hadiya Pendleton killers denied bail

"If you get caught with a gun, and there's a minimum sentencing, you're gonna be off the streets for a while," Byrne said. "You're not gonna have the opportunity, within six months of being caught with a gun, to shoot somebody else."

If convicted in this case, the two suspects could face life in prison.

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State of the Union: Obama Pushes Job Creation

Pursuing an aggressive and diverse early second-term agenda, President Obama turned his focus Tuesday night squarely to the economy, using his State of the Union address to unveil new government initiatives aimed at creating jobs.

The defining duty of the new Congress and new administration is to "reignite the true engine of America's economic growth -- a rising, thriving middle class," Obama said Tuesday night from the House chamber.

"That must be the North Star that guides our efforts," he said.

Obama's proposals had a familiar ring, including re-packaged economic ideas but also offering several bold new measures aimed at boosting the middle class.

None of the proposals would add to the deficit "by a single dime," Obama pledged, with costs offset by savings carved out in the budget and from money saved from ending two wars.

"It's not a bigger government we need, but a smarter government that sets priorities and invests in broad-based growth," Obama said.

For the first time as president, Obama called for raising the minimum wage from $7.25 to $9.00 an hour by 2015. He proposed to ensure future increases by indexing the minimum wage to inflation.

He proposed a national goal of universal pre-school education, an effort to help states provide tens of thousands of low- to middle-income four-year-old children access to quality public education from an earlier age.

Charles Dharapak/Pool/AP Photo

Obama: A Rising Middle Class Should Be 'North Star' Watch Video

Obama Wants Minimum Wage: 'A Wage You Can Live On' Watch Video

Obama Announces Afghanistan Troop Withdrawal Watch Video

And, to heal the nation's crumbling roads and bridges, Obama offered a $50 billion "fix it first" infrastructure program that would prioritize repair of existing structures before building new ones.

"Every day, we should ask ourselves three questions as a nation," Obama said. "How do we attract more jobs to our shores? How do we equip our people with the skills needed to do those jobs? And how do we make sure that hard work leads to a decent living?"

Answers to those questions, the president suggested, include redoubling investments in clean energy technologies -- a step which he said would both benefit the environment and reduce U.S. dependence on foreign oil.

"For the sake of our children and our future, we must do more to combat climate change," he said.

He called for doubling the amount of renewable electricity generation in the U.S. by 2020, and announced an energy version of his "Race to the Top" education program that would give states grants for the best energy efficiency programs.

Related: 7 Things Obama Says at Every State of the Union

In tandem with his economic focus, Obama announced the withdrawal of 34,000 U.S. troops from Afghanistan by this time next year, cutting in half the current force and marking a quickened pace for the final exit of U.S. combat forces by a 2014 deadline.

There are currently 66,000 U.S. troops serving in Afghanistan. Obama has vowed to bring nearly all of them home by the end of next year, though a small contingent will likely remain to train Afghan forces and assist counterterrorism operations, officials have said.

Obama touched briefly on his recently-unveiled proposals to overhaul the nation's immigration system, expand rights for gay and lesbian Americans and curb an epidemic of gun violence.

With dozens of victims of gun violence looking on from the House gallery, including former Rep. Gabby Giffords, and families of victims from shootings at Newtown, Conn., Oak Creek, Wisc., and Aurora, Colo., Obama made an emotional plea for an up-or-down vote on his gun control plan.

"Each of these proposals deserves a vote in Congress," he said of proposed restrictions on assault-style weapons and high capacity magazines, and enhanced background checks, among other measures.

"If you want to vote no, that's your choice," he said. "But these proposals deserve a vote. Because in the two months since Newtown, more than a thousand birthdays, graduations and anniversaries have been stolen from our lives by a bullet from a gun."

Read More: President Obama's Past State of the Union Promises

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Arctic sunshine cranks up threat from greenhouse gases

IT'S a solar double whammy. Not only does sunlight melt Arctic ice, but it also speeds up the conversion of frozen organic matter into carbon dioxide.

The amount of carbon in dead vegetation preserved in the far northern permafrost is estimated to be twice what the atmosphere holds as CO₂. Global warming could allow this plant matter to decompose, releasing either CO₂ or methane – both greenhouse gases. The extent of the risk remains uncertain because the release mechanisms are not clear.

Rose Cory at the University of North Carolina at Chapel Hill and her colleagues analysed water from ponds forming on melting permafrost at 27 sites across the Arctic. They found that the amount of CO₂ released was 40 per cent higher when the water was exposed to ultraviolet light than when kept dark. This is because UV light, a component of sunlight, raises the respiration rate of soil bacteria and fungi, amplifying the amount of organic matter they break down and the amount of CO₂ released.

The thawing Arctic is emerging as a potentially major source of positive feedback that could accelerate global warming beyond existing projections. "Our task now is to quantify how fast this previously frozen carbon may be converted to CO₂, so that models can include the process," Cory says.

Journal reference: PNAS, DOI: 10.1073/pnas.1214104110.

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China support for N. Korea to survive nuke test: analysts

BEIJING: China is unlikely to punish troublesome ally North Korea harshly for Tuesday's nuclear test, analysts say, even though Chinese state media had warned the North of a "heavy price" if it went ahead.

There was no immediate official reaction to the test in Beijing -- China is in the middle of its biggest annual holiday, the Lunar New Year.

But after the North's rocket launch in December, China expressed "regret", while repeating calls for calm.

In recent weeks the state-run Global Times has issued strongly-worded editorials urging Beijing to take a tougher line on Pyongyang, saying it would have to pay dearly for another atomic test.

But China has long supported its unpredictable neighbour for fear that instability could bring refugees flooding across the border, a US-led military escalation in the region or even ultimately a unified Korea with a US military presence next door.

"I think that China is very angry about this test," said Stephanie Kleine-Ahlbrandt, Northeast Asia director of the International Crisis Group think tank.

She said she expected "stronger reactions" from the Communist Party's new leader Xi Jinping than his predecessors.

But she added: "We won't necessarily know about any punitive measures implemented by China, and they will not necessarily deter North Korea because China is only willing to go so far. Their main concern is stability in North Korea."

Chinese trade and aid allows the regime in Pyongyang to survive and pursue its nuclear programme.

At once important yet uncontrollable, North Korea poses a similar quandary for China as small-nation allies did for the US during the Cold War, said Wang Dong, a Northeast Asia expert at Peking University.

"You have small allies which are behaving in a very dangerous, aggressive and provocative way, potentially with the danger of driving the US into a conflict that it did not want to get into," he said.

"China is put in a very similar dilemma."

Beijing will probably respond with limited measures coordinated with other nations, perhaps to cut off financial access, Wang said. It would keep any unilateral measures under wraps to avoid antagonising Pyongyang.

In 2006 Beijing quietly reduced the oil supply upon which Pyongyang depends, two months after the regime fired a ballistic missile and one month before it tested its first nuclear bomb.

The move only emerged later when trade data revealed it -- and Beijing subsequently stopped publicising the figures.

"Of course it will not acknowledge that because they do not want to publicly humiliate North Korea," said Wang. "Face is something very much taken into consideration in international relations in East Asia."

Ahead of the blast, US envoy Glyn Davies said the US and China had "achieved a very strong degree of consensus" on North Korea while the head of the UN Security Council said its 15 members were "unified" on the matter.

But China has previously worked to soften international measures. It only agreed to a UN resolution condemning December's long-range rocket launch by Pyongyang after lengthy negotiations in which it opposed stronger sanctions.

It also diluted the UN response to North Korea's second nuclear test in 2009 and was not known to have taken any unilateral measures.

Even decisively punitive measures might fail to dissuade North Korea, which has persisted with its nuclear programme despite years of international isolation.

Pyongyang sees atomic arms as vital to its legitimacy and security, a view that may have been reinforced after the longstanding Kadhafi regime in Libya, which surrendered its nuclear weapons, fell to Western-backed rebels in 2011.

"They've drawn the conclusion that countries that give up their nukes get slammed," said Kleine-Ahlbrandt.

Given Pyongyang's doggedness, she said, Beijing's unwavering support for the regime has generated fierce debate among Chinese policy analysts, with some arguing that the relationship brings more liabilities than benefits.

But China's overriding strategic interest in avoiding instability means its support is likely to endure, said Sarah McDowall, a senior Asia analyst with the consultancy IHS Global Insight.

"Its overarching objective really is to ensure stability in the Korean peninsula," she said.

"The relationship is going to remain strong, and China will continue to take political and economic measures aimed at propping up and supporting the North Korean regime."

- AFP/ck

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North Korea conducts 3rd nuclear test, officials say

STORY HIGHLIGHTS

• NEW: "We believe North Korea conducted its third nuclear test," a South Korean official says


• A magnitude 4.9 disturbance takes place in area of previous underground nuclear tests


• There is little or no history of natural seismic activity in the area


• North Korea said last month it would carry out a third nuclear test

Hong Kong (CNN) -- North Korea appeared to have conducted its third underground nuclear bomb test Tuesday, officials and experts said, as U.S. seismologists reported activity centered near the site of the secretive regime's two previous atomic blasts.

Although North Korea had warned the world of its plans to carry out a new test in a vitriolic statement last month, the move is still likely to rattle the security situation in Northeast Asia as analysts try to determine the power and complexity of the device the North is thought to have detonated.

If confirmed, it would be the first nuclear test under the North's young leader, Kim Jong Un, who appears to be sticking closely to his father's policy of building up the isolated state's military deterrent to keep its foes at bay, shrugging off the resulting international condemnation and sanctions.

It also provided a provocative reminder of a seemingly intractable foreign policy challenge for President Barack Obama ahead of his State of the Union address later Tuesday.

The area around the reported epicenter of the magnitude 4.9 disturbance in northeastern North Korea has little or no history of earthquakes or natural seismic hazards, according to U.S. Geological Survey maps. The disturbance Tuesday took place at a depth of about 1 kilometer, the USGS said.

Officials suspect a nuclear test

Government officials and security analysts had little doubt about the cause of the quake.

"We believe North Korea conducted its third nuclear test," said Kim Min-seok, a spokesman for the South Korean defense ministry. He added that the magnitude of the "artificial tremor" suggested the size of the blast was in the order of 6 to 7 kilotons, more powerful than the North's two prior nuclear tests.

"If we come to a final conclusion that it is a nuclear test," he said, "then we will consult with the international community and respond strongly."

Japanese Chief Cabinet Secretary Yoshihide Suga said that based on past cases, "We believe there is a possibility that North Korea conducted a nuclear test."

There were no initial reports concerning the activity on the North's state-run Korean Central News Agency on Tuesday.

"It's a nuclear test," said Jeffrey Lewis, director of the East Asia Nonproliferation Program at the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies. "That magnitude and that location -- it's awfully unlikely it's anything else."

In Washington, a senior administration official said the United States was working to confirm a nuclear test.

The China Earthquake Network Center said on its website that the seismic disturbance in North Korea was a "suspected explosion."

News breaks at a quiet time in Asia

The suspected test took place at a time when several East Asian countries, including China, North Korea's major ally, are observing public holidays for the Lunar New Year, which began Sunday.

It also comes ahead of the birthday on Saturday of Kim Jong Il, the former North Korean leader who died in December 2011 and was succeeded by his son, Kim Jong Un.

North Korea announced last month that it was planning a new nuclear test and more long-range rocket launches, all of which it said were part of a new phase of confrontation with the United States.

It made the threats two days after the United Nations Security Council had approved the broadening of sanctions on the reclusive, Stalinist regime in response to the North's launching of a long-range rocket in December that succeeded in putting a satellite in orbit.

Pyongyang said it carried out the launch for peaceful purposes, but it was widely considered to be a test of ballistic missile technology.

U.S. analysts say North Korea's first bomb test, in October 2006, produced an explosive yield at less than 1 kiloton (1,000 tons) of TNT. A second test in May 2009 is believed to have been about two kilotons, National Intelligence Director James Clapper told a Senate committee in 2012.

By comparison, the bomb the United States dropped on Hiroshima in 1945 was a 15-kiloton device.

In May 2012, North Korea said it had amended its constitution to formally proclaim itself a "nuclear state."

CNN's Jethro Mullen reported and wrote from Hong Kong. CNN's K.J. Kwon in Seoul, South Korea; Yoko Wakatsuki in Tokyo; Dana Ford and Matt Smith in Atlanta, Georgia; and Elise Labott in Washington contributed to this report. Journalist Connie Young in Beijing also contributed reporting.

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State of the Union guests reflect nation's hot-button issues

Several lawmakers are bringing special guests to President Obama's State of the Union address Tuesday night in order to make a statement.

Several lawmakers are bringing guests to help underscore the importance of gun control. More than 20 House Democrats are bringing guests who have been personally affected by gun violence. A bipartisan pair of Arizona lawmakers, meanwhile, will host former Rep. Gabrielle Giffords, D-Ariz., and her husband Mark Kelly.

Other lawmakers are bringing guests tied to issues like immigration and voting rights.

Below is a partial list of officials and the guests they are bringing. CBS News will update the list as more guests are confirmed:

First Lady Michelle Obama:

• Lt. Brian Murphy, who was wounded while responding to the Sikh Temple shooting last August in Oak Creek, Wisconsin. He was struck by 15 bullets.
• Cleopatra Cowley-Pendleton and Nathaniel Pendleton Sr., parents of 15-year-old Hadiya who was killed in a Chicago park.
• Desiline Victor, a 103-year-old Florida woman who waited in line for several hours to vote.
• Tim Cook, CEO of Apple.

House Minority Leader Pelosi:

• Mother and daughter from Newtown, Conn. The 4th grader sent Pelosi a letter asking for her support to strengthen gun laws in the wake of the Sandy Hook massacre.

Sen. John McCain, R-Ariz., and Rep. Ron Barber, D-Ariz.:

• Former Rep. Gabrielle Giffords, D-Ariz., and her husband Mark Kelly

Rep. Steve Stockman, R-Texas:

• Musician and gun advocate Ted Nugent

Sens. Richard Blumenthal, D-Conn., and Chris Murphy, D-Conn.:

• First Selectwoman Pat Llodra, a Republican and the Chief Executive Officer of Newtown
• Newtown Detectives Jason Frank and Dan McAnaspie, two of several first responders who rushed to Sandy Hook Elementary School on the day of the tragedy

Rep. Luis Gutierrez, D-Ill.:

• Undocumented immigrant Gabino Sanchez. The South Carolina husband and father of two U.S. citizen children is fighting deportation. Sanchez entered the country when he was 15 years old and has been working and living peacefully in the U.S. ever since.

Sen. Dianne Feinstein, D-Calif.:

• Josh Stepakoff, who in 1999 was shot at the North Valley Jewish Community Center in Granada Hills, Calif. Stepakoff, now 20, is a student at California State University Northridge.

Sen. Frank Lautenberg, D-N.J.:

• Matt Gross, a New Jersey native who was shot in the head in 1997, at the age of 27. Gross was one of several victims wounded during a shooting attack on the observation deck of the Empire State Building.

More House Democrats bringing guests affected by gun violence:

Rep. Jim Langevin, R.I.

Rep. Keith Ellison, Minn.

Rep. Carolyn McCarthy, N.Y.

Rep. Rosa DeLauro, Conn.

Rep. David Cicilline, R.I.

Rep. Diana DeGette, Colo.

Rep. Tammy Duckworth, Ill.

Rep. Elizabeth Esty, Conn.

Rep. Lois Frankel, Fla.

Rep. Lujan Grisham, N.M.

Rep. Janice Hahn, Calif.

Rep. Jim Himes, Conn.

Rep. Alan Lowenthal, Calif.

Rep. Gloria Negrete-McLeod, Calif.

Rep. Eleanor Holmes Norton, D.C.

Rep. Ed Perlmutter, Colo.

Rep. Jan Schakowsky, Ill.

Rep. Brad Schneider, Ill.

Rep. Bobby Scott, Va.

Rep. Mike Thompson, Calif.

Rep. Krysten Sinema, Ariz.

Rep. Chris Van Hollen, Md.

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North Korea Says it Has Conducted a Nuclear Test

North Korea says it has successfully tested a miniaturized nuclear device Tuesday, according to state media.

A large tremor measured at magnitude 4.9 was detected in North Korea and governments in the region scrambled to determine whether it was a nuclear test that the North Korean regime has vowed to carry out despite international protests.

Official state media said the test was conducted in a safe manner and is aimed at coping with "outrageous" U.S. hostility that "violently" undermines the North's peaceful, sovereign rights to launch satellites. Unlike previous tests, North Korea used a powerful explosive nuclear bomb that is smaller and lighter, state media reported.

Japan's prime minister has called an urgent security meeting, according to chief government spokesman Yoshihide Suga, and South Korea raised its military alert level, the AP reported.

Suspicions were aroused when the U.S. Geological Survey said it had detected a magnitude 4.9 earthquake Tuesday in North Korea.

The Comprehensive Test Ban Treaty Organization told ABC News, "We confirm that a suspicious seismic event has taken place in North Korea."

"The event shows clear explosion-like characteristics and its location is roughly congruent with the 2006 and 2009 DPRK (North Korea) nuclear tests," said Tibor Toth, executive secretary of the organization.

North Korea Threatens More Nuclear Tests, Warns U.S. Watch Video

"If confirmed as a nuclear test, this act would constitute a clear threat to international peace and security, and challenges efforts made to strengthen global nuclear disarmament and non-proliferation," Toth said in a statement on the organization's web site.

Kim Min-seok, a South Korean Defense Ministry spokesman, told reporters that North Korea informed United States and China that it intended to carry out another nuclear test, according to the AP. But U.S. officials did not respond to calls from ABC News Monday night.

The seismic force measured 10 kilotons, according to Min-seok.

"Now that's an absolutely huge explosion by conventional terms. It's a smallish, but not tiny explosion by nuclear terms. It's about two-thirds the size of the bomb that the U.S. dropped on Hiroshima," James Acton, a Senior Associate at the Carnegie Endowment for International Peace, told ABC News.

North Korea threatened in January to carry out a "higher-level" test following the successful Dec. 12 launch of a long range rocket. At the time, North Korea's leader Kim Jong-Un said his country's weapons tests were specifically targeting the United States.

The suspicious tremor comes just hours before President Obama is to give the State of the Union address, and it marks the first diplomatic test in the region for new Secretary of State John Kerry.

Also, South Korea's new president, Park Geun-hye, is scheduled to be sworn in on Feb. 25. One of North Korea's biggest holidays, Kim Jong-il's birthday, falls on Feb. 16.

China, North Korea's main ally in the region, has warned North Korea it would cut back severely needed food assistance if it carried out a test. Each year China donates approximately half of the food North Korea lacks to feed its people and half of all oil the country consumes.

Both of North Korea's previous tests used a plutonium-based method for making bomb fuel. The first was deemed a failure, the second only slightly less so. If the most recent test used HEU (highly enriched uranium), a far more difficult-to-detect method of producing bomb fuel, it would be a significant and worrisome step forward for North Korea's weapons program.

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Liver cancer survival time tripled by virus

The virus used in the vaccine that helped eradicate smallpox is now working its magic on liver cancer. A genetically engineered version of the vaccinia virus has trebled the average survival time of people with a severe form of liver cancer, with only mild, flu-like side effects.

Thirty people with hepatocellular carcinoma received three doses of the modified virus – code-named JX-594 – directly into their liver tumour over one month. Half the volunteers received a low dose of the virus, the other half a high dose. Members of the low and high-dose groups subsequently survived for, on average, 6.7 and 14.1 months respectively. By contrast, trials several years ago showed that sorafenib, the best existing medication for this cancer, prolonged life by only three months.

Two of the patients on the highest viral dose were still alive more than two years after the treatment. "It's a very substantial survival benefit," says Laurent Fischer, president of Jennerex, the company in San Francisco developing the treatment under the trade name Pexa-Vec.

Besides shrinking the primary tumour, the virus was able to spread to and shrink any secondary tumours outside the liver. "Some tumours disappeared completely, and most showed partial destruction on MRI scans," says David Kirn, head of the study at Jennerex. Moreover, the destruction was equally dramatic in the primary and secondary tumours.

"This clinical trial is an exciting step forward to help find a new way of treating cancers," says Alan Melcher of the University of Leeds, UK, who was not involved in the study. "It helps demonstrate the cancer-fighting potential of viruses, which have relatively few side effects compared with traditional chemo or radiotherapy," he says. "If it proves effective in larger trials, it could be available to patients within five years."

The fact that the virus appears able to spread to secondary tumours suggests that simply injecting the virus into the bloodstream may be effective. A trial to compare this treatment with injecting the virus directly into a tumour is under way.

Targeted at cancer

The virus has had a gene coding for an enzyme called thymidine kinase snipped out. The enzyme enables the virus to recognise and infect dividing cells. By removing the gene, the virus's developers have reduced the likelihood of healthy dividing cells being infected.

Instead, the virus exclusively attacks cancerous tissue, by targeting two genes that have increased activity in tumour cells. One genes is associated with an epidermal growth factor receptor, which stimulates the cancer to grow. The other is associated with a vascular endothelial growth factor, which enables the cancer to recruit its own blood supply. The virus reduces the activity of both genes, causing the infected cancer cell to wither and die.

What's more, the virus carries extra genes to prod the body's own immune system into action against the cancer. One produces granulocyte colony stimulating factor, a protein that encourages production of extra white blood cells at sites of infection. The other produces a protein not naturally found in humans, called Lac-Z, that earmarks infected cells for destruction.

Fischer says that to date, more than 200 people have received the virus, which has also shown promise against other types of cancer, including those of the kidney and skin. But he warns that not everyone sees a benefit. "We know why patients respond, but not why they don't," he says.

Journal reference: Nature Medicine, DOI: 10.1038/nm.3089

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Tech giants summoned by Australia pricing inquiry

SYDNEY: Global technology giants Microsoft, Apple and Adobe were on Monday ordered to appear before a pricing inquiry examining the often-higher cost of tech goods in Australia compared with other economies.

The lower house committee holding the probe, which was launched last May, said it had summoned the trio to appear at a public hearing next month to explain why Australian customers paid more for the same products.

"The committee is looking at the impacts of prices charged to Australian consumers for IT products," it said in a statement.

"Australian consumers often pay much higher prices for hardware and software than people in other countries."

The inquiry was set up to examine claims by consumer advocacy groups of price discrimination for Australians on technology, with music, games, software, and gaming and computer hardware costing substantially more than elsewhere.

According to consumer lobby group Choice, Australians pay on average 73 percent more on iTunes downloads than the United States, 69 percent more on computer products and a staggering 232 percent more on PC game downloads.

Office software was on average 34 percent more expensive in Australia when compared with the United States, Choice said in its submission to the inquiry, with hardware coming in at 41 percent more expensive.

One software package was A$8,665 (US$8,939) more expensive to buy in Australia than the United States -- a gap that Choice described as "particularly unreasonable".

"For this amount, it would be cheaper to employ someone for 46 hours at the price of $21.30 per hour and fly them to the US and back at your expense -- twice," Choice said.

Choice only did comparisons to the United States and Britain; the inquiry is examining discrepancies with these countries as well as with Asia-Pacific economies.

Apple and Microsoft have both made their own submissions to the committee, arguing that prices differed across jurisdictions due to a range of factors including freight, local taxes and duties and foreign exchange rates.

The Australian Information Industry Association, which represents Adobe and other major ICT firms, has submitted to the committee that the "costs of doing business in Australia are higher than in many other countries".

It pointed to retail rent costs and high wages as some of the main factors behind business costs in Australia being "5-10 percent higher than any other country... and these costs are passed onto consumers".

Apple and Microsoft both declined to comment when contacted by AFP while Adobe said it would "cooperate with the committee as we have done since the inquiry began".

- AFP/ir

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Almost famous: See celebs' early roles

By Henry Hanks, CNN

updated 5:05 PM EST, Thu February 7, 2013

Stars who started out like GoDaddy's geek

Jesse Heiman

Sylvester Stallone

John Travolta

Keanu Reeves

Courtney Cox

Matt LeBlanc

Tina Fey

Rainn Wilson

Megan Fox

Dean Winters

Read More..