Australia is cracking down on Big Tech’s influence with a proposed law that could impose fines of up to A$50 million on global technology companies that suppress competition and prevent consumer switching between services. The government aims to empower the competition regulator to oversee compliance, investigate anti-competitive practices online, and penalize companies that engage in such behavior. The law, similar to the EU’s Digital Markets Act, seeks to make it easier for consumers to move between competing services like social media platforms, internet browsers, and app stores.
Apple, Google, and Meta, which dominate app downloads and ad revenues, have not yet responded to the proposed law. The consultation process will end on February 14, with more discussions planned to prepare the draft legislation. The focus will initially be on app marketplaces and ad tech services, with specific obligations to prevent companies from unfairly promoting their own apps and giving preferential treatment to their services.
A competition commission report in 2022 highlighted Google’s dominance in online search services in Australia, while Apple’s App Store and Google Play Store control a significant portion of app downloads. Meta Platforms’ Facebook and Instagram also hold a large share of social media services in the country. The proposed law aims to level the playing field and foster competition in the digital economy to prevent dominant platforms from abusing their power and stifling innovation.
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