Australia’s competition regulator advised to revise its competition laws for digital platforms

Australia’s competition regulator has recommended a revision of its competition laws in response to the rapid expansion of digital platforms such as Amazon, Apple, Google, Meta, and Microsoft within the country. The Australian Competition and Consumer Commission (ACCC) cited the growing risk of invasive data collection and other practices by these platforms as the rationale behind the proposed reforms.

ACCC Chair Gina Cass-Gottlieb explained that the suggested reforms involve targeted consumer protections and the implementation of service-specific codes to prevent anti-competitive conduct by designated digital platforms. While the ACCC has not identified specific instances of anti-competitive behavior, it expressed concern that digital platforms with significant market power could manipulate it to their advantage.

According to the ACCC, these platforms can leverage their market dominance through practices such as bundling products, pre-installation, and default settings to limit customer choice or hinder innovation from competitors. The regulator also highlighted the issue of data collection, noting that certain providers, like Amazon, Apple, and Google, amass substantial consumer data through smart home devices, often without clear disclosure in privacy policies about the extent of data collection.

In addition to consumer protection measures, the ACCC proposed new mandatory obligations for all digital platforms to address issues like scams, harmful apps, and fake reviews. These would include notice and action requirements and enhanced verification of business users and reviews.

The report emphasized the role of digital platform providers in advancing emerging technologies. The five major digital platforms mentioned are investing in research and development and acquiring smaller companies in areas such as generative AI to maintain their positions in the evolving digital economy.

ACCC Chair Cass-Gottlieb highlighted the critical role of digital platform service providers in the development of new technologies, including artificial intelligence and cloud computing, underscoring their importance to the Australian economy.