Digital giants face new competition hurdles: Australia proposes tougher laws،
In many countries, digital platforms face increasing restrictions and obstacles due to new laws and regulations. Last year, the European Union led the way with the Digital Market Act (DMA), forcing tech giants like Apple to adhere to updated competition rules.
This prompted Apple to recognize the need for third-party app stores in Europe, although the company later challenged the EU’s decision requiring the inclusion of competing app stores on iPhones. Following this trend, Australia is now advocating for new competition laws in the area of digital platforms.
According to ReutersAustralia’s competition watchdog has highlighted the need for these new laws in response to the rapid expansion of digital platforms such as Amazon, Apple, Google, Meta and Microsoft in the country.
The Australian Competition and Consumer Commission (ACCC), in its recent report on the investigation into digital platform services, expressed concerns about the increased risk of harmful behavior from these platforms. This includes practices such as invasive data collection and actions that may block customers and restrict their choices.
ACCC President Gina Cass-Gottlieb said: “Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive behavior by certain designated digital platforms.“.
Although the ACCC did not make specific findings regarding anti-competitive behavior, it highlighted the potential for digital platforms with significant market power to resort to practices such as product bundling, pre-installation and default settings that limit customer choice or discourage competitor innovation.
Regarding data collection practices, the ACCC found that these providers have expanded access to extensive consumer data. However, their privacy policies do not always make it clear whether the data collected exceeds what is necessary for the operation of the device or to improve the product.
The regulator has proposed mandatory obligations on all digital platforms to address issues such as scams, harmful apps and fake reviews. This includes notification and action requirements, as well as stricter verification of business users and reviews.
Additionally, the ACCC highlighted the importance of ensuring that competition laws are adaptable to meet the challenges posed by emerging technologies such as generative AI and virtual reality.
