The ACCC has welcomed today’s start of consultation by the Australian Government on the implementation of a new digital competition regime in Australia.
The consultation comes after the Government’s in-principle agreement to competition reforms recommended by the ACCC to address harms caused by digital platforms.
“This is an important opportunity for consumers, businesses and other interested parties to help shape the future of digital platforms competition in Australia,” ACCC Commissioner Peter Crone said.
“Digital platforms are some of the largest and most powerful companies in the world and we rely on them as we go about our lives every day. They have also become inescapable partners for many small and medium businesses, and are essential to the functioning of our economy.”
“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 worked closely with the Treasury to develop the proposed framework, including the key features of a new digital competition regime.
More information about the consultation is available on the Treasury’s website and submissions can be made to digitalcompetition@treasury.gov.au by 14 February 2025.
Regulating digital platform services critical to the Australian economy
The proposed framework if introduced would bring new, upfront service-specific obligations on certain ‘designated’ digital platforms that provide specific services. These requirements would complement enforcement of existing competition law.
New obligations imposed under the new framework could prevent app marketplaces from requiring developers to use their proprietary in-app payment systems, which often include commission fees of up to 30 per cent of every in-app digital transaction. The new regime could also address the lack of transparency over policies and processes governing app reviews and approval, and app marketplaces restricting developers from communicating directly with consumers about alternative ways to make digital purchases outside of apps.
The ACCC has also previously identified significant issues in the supply of ad tech services in Australia. For example, the ACCC’s 2021 Digital Advertising Services Inquiry expressed concern with Google giving more favourable treatment to its own ad tech services, restricting the supply of certain ad inventory to users of its other services, and not providing sufficient transparency about how its ad tech services work, limiting informed decision making.
Above is a news release from the ACCC (3/12/2024). The original article is available here, along with additional information and quotes. Additionally, the ACCC has also released the ninth Digital Platform Services Inquiry report, and an a media release on Google’s dominance in Australia as a search engine.