The Australian government has proposed a new law that could see global technology companies facing fines of up to A$50 million for stifling competition and preventing consumers from switching between services. The law, similar to the EU’s Digital Markets Act, aims to empower the competition regulator to investigate anti-competitive practices online. Companies like Apple, Google, and Meta, which dominate app downloads and ad revenues, have not yet responded to the proposal.
The government plans to prioritize app marketplaces and ad tech services for compliance with the law, which would prevent companies from manipulating search results and favoring their own services over third parties’. A competition commission report showed that Google controls a significant portion of online search services in Australia, while Apple dominates app downloads and Meta Platforms’ Facebook and Instagram are the most popular social media platforms in the country.
The proposed law aims to address the challenges posed by the dominance of major tech platforms, which can limit consumer choice, increase costs, and prevent smaller competitors from thriving. The government hopes that by enforcing these new regulations, it will create a more competitive digital economy and empower consumers to freely switch between services. The consultation process for the proposed law is set to end on February 14, and further discussions will be held to finalize the draft legislation.
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