Global digital platforms such as Google and Meta face large fines for anti-competitive behaviour, including driving up prices for advertising, under new laws proposed by the federal government.
The new regime is aimed at conduct that is anti‑competitive, creates barriers to entry or exploits market power to harm Australian users of digital platform services.
“A handful of global tech giants dominate how we pay for things, what we download, and how our data is used,” said assistant federal treasurer Stephen Jones.
He said existing competition rules are no longer effective in addressing control over key services such as search engines, app stores and social media.
The government is proposing a new regime that would impose upfront rules on large digital platforms to address issues encountered by Australian consumers and businesses when using digital platforms.
The laws would give the minister the power to designate platforms or services and impose service‑specific obligations, with penalties of up to $50 million, or 30% of turnover, for failure to comply.
The government is proposing the first two services to be investigated for designation under the regime to be app stores and ad tech, and is seeking views on whether social media should also be prioritised.
Currently, app store platforms owned by Google and Apple can preference their own apps in search results making it difficult for consumers to compare products. They can also require businesses to use their payment systems, increasing prices for businesses and consumers.
The majority of digital ad tech services in Australia are facilitated by Google, driving up prices for advertisers, and reducing profits for publishers who display ads.
The paper seeks stakeholder views on the proposed approach and key elements of the regime, including:
- the general framework and scope of covered services
- the priority services for designation
- the designation process to ensure the regime is appropriately targeted
- potential obligations that would apply to designated platforms, and
- proposed enforcement and compliance mechanisms.
The proposal follows the introduction of similar regimes in the European Union, UK and Japan. The European Commission estimates the EU laws will deliver AUD $21.4 billion in annual benefits for consumers.
Treasury is seeking feedback on the proposals by February 14.
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