The Australian government unveiled a groundbreaking proposal on Monday aimed at curbing anti-competitive behavior by global tech giants. If passed, the new law could impose fines up to A$50 million ($33 million) on companies that suppress competition and hinder consumers from easily switching between digital services.
The proposed legislation, introduced by Assistant Treasurer Stephen Jones, targets the growing influence of major technology companies, particularly in sectors like app stores, social media, and online advertising. The law would grant Australia’s competition regulator the authority to oversee compliance and investigate anti-competitive practices online.
In a speech scheduled for later today, Jones emphasized the challenges posed by the digital economy to existing legal frameworks. “The dominant platforms can charge higher costs, reduce consumer choice, and employ underhanded tactics to lock users into their ecosystem. This stifles innovation and makes it harder for new competitors to emerge,” Jones remarked.
This proposal follows a series of actions by the center-left Labor government to rein in the power of Big Tech. Just last week, Australian parliament passed a law banning social media use for children under 16, signaling a broader push to regulate digital platforms. The new competition law, inspired by similar efforts in the European Union, aims to ensure that consumers are not tied to one service or product due to manipulative practices by major tech companies.
While tech giants like Apple, Google, and Meta (Facebook) dominate the Australian market—controlling key areas such as app downloads and advertising revenues—they have yet to comment on the proposed law.
The proposed law would create specific obligations for major platforms to improve transparency and allow for easier movement between competing services. For instance, consumers should be able to switch social media platforms or app stores without facing unnecessary barriers. The law would also target manipulative practices, such as prioritizing low-rated apps in search results or giving undue preference to a company’s own services over third-party competitors.
The Australian Competition and Consumer Commission (ACCC) will work with the government to identify which platforms pose the greatest threat to fair competition. In its 2022 report, the ACCC noted that Google controlled up to 95% of the online search market in Australia, while Apple’s App Store and Google Play Store accounted for over 80% of app downloads. Meta’s Facebook and Instagram platforms together dominated 79% of the social media services.
The consultation period for the proposed law will end on February 14, 2025, with further discussions to refine the draft legislation. The government aims to ensure that the new law effectively curbs monopolistic practices and fosters a competitive, user-friendly digital landscape in Australia.
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