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In a recent report on the Digital Platform Services Inquiry, the Australian Competition and Consumer Commission (ACCC) has underscored the imperative for legislative intervention in light of the escalating influence of major digital platforms, including Amazon, Apple, Google, Meta, and Microsoft within the Australian market. The ACCC expresses concerns over potential adverse ramifications arising from the expansion of these platforms, notably in the realms of invasive data collection and the implementation of practices that curtail consumer choices and lock-in behaviors.
ACCC Chair Gina Cass-Gottlieb, in articulating the regulatory agency's stance, emphasizes the necessity for comprehensive reforms. "Our proposed reforms encompass targeted consumer protections and the establishment of service-specific codes aimed at mitigating anti-competitive behaviors exhibited by designated digital platforms," she remarked.
While the ACCC has refrained from making explicit allegations of anti-competitive conduct, it highlights the propensity for digital platforms wielding substantial market power to employ tactics such as product bundling, pre-installation strategies, and default settings to restrict customer choice and inhibit competition and innovation.
Notably, the major digital platforms implicated in the report—Amazon, Apple, Google, Meta, and Microsoft—have yet to provide official responses to the ACCC's concerns.
The ACCC also raises a red flag regarding data collection practices, positing that the expanded influence of these digital entities provides them with heightened access to extensive consumer data. Moreover, the regulatory body notes a lack of clarity in the privacy policies of these platforms, raising concerns about the appropriateness of the data collected vis-Ã -vis device functionality or product enhancement.
In response to these challenges, the ACCC has proffered recommendations for mandatory obligations on all digital platforms to address issues such as scams, harmful apps, and fabricated reviews. These recommendations include robust notice and action requirements, as well as enhanced verification processes for business users and reviews.
Acknowledging the rapidly evolving technological landscape, the ACCC underscores the importance of ensuring that competition laws are sufficiently agile to address potential challenges posed by emerging technologies, including generative AI and virtual reality.
This call for legislative scrutiny follows the ACCC's earlier announcement of a comprehensive five-year inquiry into the digital platform services sector, reflecting a proactive stance to navigate the dynamic and evolving digital ecosystem in the interest of consumer protection and market fairness.
