Competition watchdog ACCC has put a call out for feedback on potential legislation to address the dominance of big tech platforms.
In a discussion paper, released today, the Australian Competition and Consumer Commission outlined several options to address harms to competition, consumers, and business users in a range of areas dominated by digital platforms, including social media, search, app marketplace, general online retail marketplaces, and adtech.
The legislative reform options are part of the inquiry into markets for the supply of digital platform services in Australia and their impacts on competition and consumers.
“Now is the time to consider whether further reforms are needed to supplement the important tools in Australia’s competition and consumer law to maintain a vibrant digital economy that drives innovation and enhances productivity,” says ACCC chair Rod Sims.
“There is momentum building internationally, with authorities and lawmakers around the world taking action to address the competition and consumer harms arising on digital platforms.
“These platforms hold powerful positions in the economy and society and can often dictate terms to businesses that use their services. This in turn can harm consumers and the small businesses that rely on them, including through higher prices, greater use of personal data, reduced choice, less innovation or lower quality products.”
A new regulatory framework could incorporate measures to address anti-competitive conduct, for example anti-competitively preferencing a platform's own services above those of its business users, barriers to entry, such as access to data, bargaining imbalances, and insufficient consumer and business user protections, including effective dispute resolution processes.
The paper also outlines other potential measures to improve consumer protection, including obligations on platforms to deal more effectively with online scams and restrictions on other conduct that harms consumers, such as exploitative or manipulative user interfaces.
“It is clear that large digital platforms are often protected by high barriers to entry and expansion, and in some cases, they have become ‘gatekeepers’, acting as critical intermediaries between businesses and consumers, and controlling access to consumers,” Sims says.
“We are looking at whether we need additional laws or reform to make the online environment fairer for businesses and safer for consumers.”
The discussion paper confirmed the Treasury would be conducting a review into the News Media and Digital Platforms Mandatory Bargaining Code in March.
Radio industry body Commercial Radio Australia (CRA) says the government’s review into the code could be an opportunity to examine whether stronger actions are required to urge Google and Facebook to strike content deals with radio broadcasters.
The tech platforms have not reached commercial agreements with the majority of commercial radio stations despite the ACCC granting CRA authorisation last October to collectively bargain over payments.
“We are continuing to seek commercial outcomes but if Google and Facebook are unwilling to negotiate fair compensation, then stronger actions and designation may be required,” Warner says.
“We remain concerned that the current status quo will leave smaller media organisations such as radio stations at a competitive disadvantage.”
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