Australian Competition Watchdog Advocates New Laws Amidst Digital Platform Expansion

ACCC notes that digital platforms wielding significant market power could employ tactics to limit customer choice and stifle innovation from competitors.

CCC stressed the need for competition laws that are adaptable to emerging technologies like generative AI and virtual reality.

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In response to the rapid proliferation of digital giants like Amazon, Apple, Google, Meta, and Microsoft within Australia, the country's competition watchdog, the Australian Competition and Consumer Commission (ACCC), has asserted the necessity for updated competition laws. The latest report from the Digital Platform Services Inquiry by the ACCC expresses concerns over the expanded presence of these platforms, citing potential risks associated with invasive data collection and practices that may restrict customer choices and foster harmful behaviour.

ACCC Chair Gina Cass-Gottlieb emphasised, "Our proposed reforms aim at implementing targeted consumer protections and service-specific codes to curb anti-competitive conduct by specific designated digital platforms."

While the ACCC has not made specific findings of anti-competitive behaviour, it notes that digital platforms wielding significant market power could employ tactics such as product bundling, pre-installation, and default settings to limit customer choice and stifle innovation from competitors.

Regarding data collection practices, the ACCC found that these digital behemoths, through their expansions, gain greater access to extensive consumer data. The report highlights the lack of clarity in privacy policies about whether the collected data goes beyond what is necessary for device functionality or product improvement.

The regulator is also pushing for new mandatory obligations on all digital platforms to address issues such as scams, harmful apps, and fake reviews. This includes implementing notice and action requirements and strengthening the verification of business users and reviews.

In addition to addressing the current challenges posed by digital platforms, the ACCC stressed the need for competition laws that are adaptable to emerging technologies like generative AI and virtual reality.

Earlier this year, the ACCC announced a five-year inquiry into the rapidly evolving ecosystem of digital platform service providers in Australia.