According to the ACCC, there is a rise in potential for harmful practices that restrict customers’ options and demand new competition laws.
New competition laws are needed in Australia, according to the competition watchdog, which stated on Monday that this is because digital platforms like Amazon, Apple, Google, Microsoft, and Meta are growing rapidly in the nation.
In its most recent report for the Digital Platform Services Inquiry, the Australian Competition and Consumer Commission (ACCC) expressed concerns about the rise in these platforms’ potential for engaging in harmful practices, such as invasive data collection and practices that restrict customers’ options and lock them in.
In order to stop specific designated digital platforms from engaging in anti-competitive behavior, our proposed changes call for tailored consumer protections and service-specific regulations, according to ACCC Chair Gina Cass-Gottlieb.
Although the ACCC has not specifically found any instances of anti-competitive behavior, it has stated that digital platforms with substantial market share may employ strategies such as product bundling, pre-installation, and default settings to restrict customer options or stifle competition innovation.
While Meta refrained from commenting, an Amazon representative stated, “We are still assessing the details of the report.”
In terms of data collection methods, the ACCC discovered that these suppliers have more expansion-related access to rich customer data, and it’s not always evident from the pertinent privacy policies whether the data obtained goes beyond what’s necessary for improved product functionality or device functioning.
In order to combat fraud, malicious apps, and phony reviews, the regulator has also suggested additional necessary criteria for all digital platforms. These requirements include notice and action requirements, as well as more stringent authentication of business users and reviews.
According to the ACCC, competition laws should also take into account the possible risks presented by cutting-edge technology like virtual reality and generative AI.
As part of a five-year investigation of the industry, the regulator had earlier this year announced plans to examine the nation’s rapidly changing network of digital platform service providers.
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