Digital giants face new competition hurdles: Australia proposes tougher laws

In many countries, digital platforms are grappling with increased restrictions and hurdles due to new laws and regulations. Last year, the European Union set the stage with the Digital Market Act (DMA), compelling tech giants like Apple to adhere to updated competition rules.

This prompted Apple to acknowledge the necessity of third-party app stores in Europe, though the company later contested the EU ruling mandating the inclusion of rival app stores on iPhones. Following this trend, Australia is now advocating for new competition laws in the realm of digital platforms.

According to Reuters, Australia's competition watchdog has emphasized the need for these new laws in response to the swift expansion of digital platforms such as Amazon, Apple, Google, Meta, and Microsoft within the country.

The Australian Competition and Consumer Commission (ACCC), in its recent report on the Digital Platform Services Inquiry, expressed concerns about the increased risk of harmful behavior from these platforms. This includes practices like invasive data collection and actions that could lock in customers and restrict their choices.

ACCC Chair Gina Cass-Gottlieb stated, "Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms."

While the ACCC has not made specific findings of anti-competitive conduct, it highlighted the potential for digital platforms with significant market power to employ practices such as product bundling, pre-installation, and default settings that limit customer choice or discourage innovation from competitors.

Regarding data collection practices, the ACCC found that these providers have expanded access to extensive consumer data. However, it's not always clear from their privacy policies whether the collected data exceeds what is necessary for device functionality or product improvement.

The regulator has proposed mandatory obligations on all digital platforms to address issues like scams, harmful apps, and fake reviews. This includes notice and action requirements, along with stronger verification of business users and reviews.

Additionally, the ACCC emphasized the importance of ensuring that competition laws are adaptable to meet the challenges posed by emerging technologies such as generative AI and virtual reality.