The Australian government has proposed new competition regulations that could see global technology giants fined up to A$50m ($32.5m) if they stifle competition or choice when users transition between digital services. This legislation forms part of a comprehensive government strategy to address the growing dominance of tech giants in critical areas of the digital economy.
Designed to strengthen the Australian Competition and Consumer Commission (ACCC), the proposed law echoes regulatory frameworks such as the European Union (EU)’s Digital Markets Act.
The announcement comes as Australia’s Albanese administration intensifies its efforts to regulate Big Tech, having recently passed legislation banning social media use for children under 16. Assistant Treasurer Stephen Jones outlined the proposed measures during a speech at the McKell Institute, a Sydney-based public policy research organisation, reported Reuters.
Jones emphasised the need to modernise legal frameworks to address challenges in the digital economy. “The dominant platforms can charge higher costs, reduce choice, and use sneaky tactics to lock consumers into using certain products,” said the minister. “Innovation outside of the established players becomes almost impossible.”
Australia’s Big Tech regulatory campaign
The draft legislation would empower the Australian competition regulator to monitor compliance, investigate anti-competitive practices, and impose fines on violators. It aims to simplify the process of switching between competing digital services, such as social media platforms, web browsers, and app stores.
The law would also introduce service-specific obligations targeting sectors with the highest potential for anti-competitive behaviour. Jones cited app marketplaces and digital advertising technologies as initial priorities. Under the new rules, tech firms could be prohibited from promoting poorly rated apps or prioritising their own products over those of third parties in search results.
A 2022 report by the ACCC revealed the extent of Big Tech’s market dominance in Australia. Google controls 93% to 95% of the online search market, while Apple’s App Store and Google Play account for the majority of app downloads at 60% and 40%, respectively. Meanwhile, Meta Platforms’ Facebook and Instagram collectively serve 79% of the country’s social media users.
The proposed legislation is currently open for public consultation until 14 February 2024. In a separate announcement, Meta Platforms revealed stricter rules for advertisers promoting financial products and services in Australia. The move aims to address the growing issue of online scams, particularly fraudulent schemes exploiting celebrity endorsements.
Under the updated rules, advertisers must verify their Australian Financial Services Licence number alongside their payer and beneficiary details before their advertisements can be published. Once approved, ads will include a “Paid for By” disclaimer to enhance transparency, Meta Platforms confirmed.
This follows the social technology firm’s removal of 8,000 deceptive “celebrity bait” advertisements in October as part of a collaboration with Australian banks to combat fraud.
Read more: Australia unveils new regulatory frameworks to ensure safe use of AI
