The Australian Competition and Consumer Commission (ACCC) has welcomed (3 December) the Australian Government’s consultation process on the proposed digital competition regime.
The new framework, aimed at addressing the market dominance of digital platforms, follows the Government’s in-principle acceptance of ACCC recommendations for regulatory reforms.
Shaping the Future of Digital Competition
The consultation, launched today, provides an opportunity for consumers, businesses, and other stakeholders to influence the regulatory framework designed to ensure fair competition in digital markets.
“Digital platforms are integral to our daily lives and essential to the economy,” said ACCC Commissioner Peter Crone. “However, their immense power must not be misused to stifle competition, harming the businesses and consumers that depend on them.”
The proposed framework introduces service-specific obligations for designated platforms offering key services, complementing existing competition laws.
Tackling Key Issues in Digital Markets
The ACCC’s proposals target anti-competitive practices in areas such as app marketplaces and ad tech services. For example, the regime could prohibit app marketplaces from mandating the use of proprietary payment systems that charge commission fees of up to 30%.
Other measures might address:
- Transparency in app review and approval processes.
- Restrictions on developers communicating alternative payment options to consumers.
- Preferential treatment of marketplace providers’ own apps in search results.
The ACCC has also highlighted concerns in ad tech services, including Google’s alleged favorable treatment of its own services and a lack of transparency in ad tech operations.
Aligning with Global Trends
The proposed reforms are in line with international efforts to regulate digital platforms, mirroring initiatives in the European Union, UK, Japan, and India.
“This ensures Australia is not left behind and remains competitive,” Mr. Crone noted. “These changes not only address existing concerns but also safeguard competition in future technologies.”
Have Your Say
Public submissions on the proposed regime can be made to digitalcompetition@treasury.gov.au until 14 February 2025. More details are available on the Treasury’s website.
Background
The ACCC has been investigating digital competition since 2017 and has repeatedly highlighted the inadequacy of existing laws in addressing market harms. Its 2022 report called for a dedicated framework to protect Australian consumers and businesses from anti-competitive practices by digital giants.
The Digital Platform Services Inquiry, a five-year initiative, will conclude in March 2025.
Source: https://www.accc.gov.au/media-release/accc-welcomes-consultation-on-new-digital-competition-regime
