The ACCC has welcomed consultation by the federal government on the implementation of a 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.
The ACCC has worked closely with the Treasury to develop the proposed framework, which 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.
ACCC commissioner Peter Crone said this is an important opportunity for consumers, businesses and other interested parties to help shape the future of digital platforms competition in Australia.
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.
“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," he said.
"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.
“Greater competition in digital platform markets should bring benefits to Australian consumers like more choice in products and services, better transparency and increased innovation."
The ACCC has consistently highlighted concerns about competition in digital markets in several reports produced through its five-year Digital Platform Services Inquiry, which concludes in March 2025.
For example, 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% 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.
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.
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