Tech giants face dominance laws
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The Albanese government is targeting tech giants like Google and Apple with a proposed digital competition regime.
The plan focuses on introducing strict rules for major platforms, starting with app stores and advertising technology.
Assistant Treasurer Stephen Jones says the regime would dismantle barriers created by a few dominant corporations, enhancing choice and reducing costs for Australians.
“This digital economy is dominated by a few, giant corporations with overwhelming market share,” Jones said.
“The difference in resources and information between these titans and consumers is a chasm that consumers cannot hope to overcome.”
Under the proposed laws, designated digital platforms would face strict obligations, with penalties reaching $50 million or 30 per cent of their turnover if breached.
The focus is on tackling practices such as app stores prioritising their own apps in search results and forcing developers to use proprietary payment systems, which inflate costs.
Ad tech dominance is also under scrutiny, with Google accused of inflating ad prices while reducing publisher revenues.
ACCC Commissioner Peter Crone said the changes would curb harmful practices by powerful platforms.
“New measures are needed to ensure these powerful platforms don’t misuse their position,” Crone said, adding that more competition would mean better choices, transparency, and innovation for consumers.
The regime aligns with similar laws in the European Union, the UK, and Japan.
The EU estimates its rules could deliver AU$21.4 billion in annual consumer benefits.
Crone emphasised the need for Australia to keep pace with global reforms.
“By introducing similar changes here, it will help ensure Australian businesses and consumers aren’t left behind,” he said.
Public input is invited until 14 February 2025, with the government also seeking views on whether social media platforms should be prioritised for future regulation.
