Proposed regime aims to curb anti-competitive practices by dominant digital platforms
The Australian Competition and Consumer Commission (ACCC) has welcomed the government’s launch of consultations on a new digital competition regime, aimed at addressing harms caused by dominant digital platforms.
The government’s consultation follows its in-principle support for reforms recommended by the ACCC to curb anti-competitive practices in digital markets.
“This is an important opportunity for consumers, businesses, and other stakeholders to help shape the future of digital platforms competition in Australia,” said ACCC commissioner Peter Crone (pictured above).
Crone highlighted the growing reliance on digital platforms in daily life and their critical role for small and medium-sized businesses. He also stressed the need for regulatory measures to prevent these platforms from misusing their market power.
“New measures are needed to ensure these powerful platforms don’t misuse this position to stymie competition at the expense of the businesses and consumers that rely on them,” he said.
The ACCC has collaborated with the Treasury to develop the proposed digital competition framework, which includes upfront, service-specific obligations for designated digital platforms. These measures would supplement existing competition laws.
“Greater competition in digital platform markets should bring benefits to Australian consumers like more choice in products and services, better transparency, and increased innovation,” Crone said.
The new framework could impose rules to address practices in app marketplaces, such as requiring developers to use proprietary in-app payment systems with high commission fees. It may also improve transparency around app review processes and allow developers to communicate directly with consumers about alternative payment options outside of apps.
The regime could further address concerns over preferential treatment by app marketplaces for their own products, such as favouring them in search result rankings.
Crone pointed to additional issues in ad tech markets, where the ACCC’s 2021 digital advertising services inquiry identified practices by Google, including favouring its own ad tech services and limiting transparency for advertisers.
The proposed reforms align with regulatory efforts in jurisdictions such as the European Union, United Kingdom, Japan, and India.
“This is an opportunity to build on the progress made overseas, and by introducing similar changes here, it will help ensure Australian businesses and consumers aren’t left behind,” Crone said.
The ACCC anticipates that the framework will be tailored to Australia’s needs while complementing international approaches.
“These proposed reforms are important in not only addressing current concerns with anti-competitive conduct by the largest digital platforms but also ensuring more competition in future technologies and services,” Crone said.
The government is accepting public submissions on the proposed digital competition regime through the Treasury’s website until Feb. 14.
The ACCC has been investigating competition and consumer issues in the digital economy since 2017. In its September 2022 report, the regulator called for a new digital competition framework, citing insufficient protections under existing laws.
The government endorsed the ACCC’s findings in December 2023 and agreed to proceed with the development of a new regulatory regime.
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