Key Points
- The Australian government has proposed legislation imposing fines of up to A$50 million for anti-competitive practices by Big Tech.
- The legislation seeks to make switching between competing digital services easier for consumers.
- The proposal mirrors the EU’s Digital Markets Act, aimed at regulating dominant digital platforms.
- Public consultations on the draft law will conclude on February 14, 2025.
The Australian government has proposed legislation to curb global technology giants’ anti-competitive practices. The legislation threatens fines of up to A$50 million ($33 million) for companies that suppress competition or hinder consumers from switching between services.
Assistant Treasurer Stephen Jones announced the proposed law to empower the Australian Competition and Consumer Commission (ACCC) to monitor compliance, investigate anti-competitive behaviors, and enforce penalties. In a speech at the McKell Institute in Sydney, Jones emphasized the digital economy’s challenges to current legal frameworks. “The dominant platforms can charge higher costs, reduce choice, and use sneaky tactics to lock consumers into certain products,” Jones stated. “This stifles innovation and entrenches the power of established players.”
Inspired by the European Union’s Digital Markets Act, the legislation aims to facilitate easier transitions between competing services such as social media platforms, internet browsers, and app stores. The government will initially focus on app marketplaces and advertising technology (ad tech) services.
Specific obligations under the law would prohibit companies from artificially promoting poorly rated apps in search results and giving preferential treatment to their services over those of competitors. These measures ensure a fairer playing field for all businesses and greater consumer choices.
The proposal comes amid growing concerns over Big Tech’s market dominance. A 2022 report by the ACCC revealed that Google controlled 93% to 95% of online search services in Australia, while Apple’s App Store and Google Play Store accounted for 60% and 40% of app downloads, respectively. Meta Platforms, which owns Facebook and Instagram, supplied 79% of the country’s social media services.
The government’s consultation process for the draft legislation will conclude on February 14, 2025, after which further refinements will be made. The move follows a series of recent measures by the center-left Labor government targeting Big Tech, including a law passed last week banning social media access for children under 16.
