Australia‘s competition watchdog, the Australian Competition and Consumer Commission (ACCC), has recommended the introduction of new competition laws to address concerns related to the rapid expansion of digital platforms in the country. The ACCC, in its latest report for the Digital Platform Services Inquiry, expressed worries about the increased risk of harmful behavior by platforms such as Amazon, Apple, Google, Meta, and Microsoft. The watchdog proposed reforms that include targeted consumer protections and service-specific codes to prevent potential anti-competitive conduct by designated digital platforms.
While the ACCC did not make specific findings of anti-competitive conduct, it highlighted that digital platforms with significant market power could engage in practices such as bundling products and using default settings to limit customer choice or discourage innovation from competitors. The proposed reforms also aim to address concerns related to data collection practices, emphasizing the need for transparency in privacy policies regarding the extent of data collected beyond what is required for device functionality or product improvement.
The ACCC further suggested new mandatory obligations for all digital platforms to combat scams, harmful apps, and fake reviews, including notice and action requirements and enhanced verification of business users and reviews. The watchdog emphasized the importance of ensuring that competition laws are fit-for-purpose to respond to emerging technologies like generative AI and virtual reality.
As of now, the digital platforms in question, including Amazon, Apple, Google, Meta, and Microsoft, have not provided immediate responses to the ACCC’s recommendations. The proposed reforms are part of ongoing efforts by regulatory authorities worldwide to adapt competition laws to the challenges posed by the rapid growth and influence of digital platforms.
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