December 3, 2024 – On Monday, Reuters reported that the Australian government has introduced a draft law proposing stringent measures against global tech giants. The proposed legislation stipulates that these giants could face penalties of up to AUD 50 million if they stifle market competition or hinder consumers’ freedom to switch between services.
This new bill grants greater powers to Australia’s competition watchdog, allowing it to oversee technology companies’ compliance, investigate online anti-competitive behaviors, and impose fines on those who violate the rules. Assistant Treasurer Stephen Jones stated in a speech that these steps are designed to tackle the legal challenges posed by the digital economy. “Dominant platforms not only charge exorbitant fees but also employ various tactics to limit consumer choices and even ‘lock’ users into certain products. For startups, breaking through these giants’ blockade is almost impossible,” Jones said.
As of now, Apple, Google, and Meta, which hold sway in app downloads and advertising revenue, have not responded to the bill.
The new bill, reminiscent of the European Union’s Digital Markets Act, aims to facilitate users’ ability to switch between different social media platforms, internet browsers, and app stores. Following recommendations from the Australian Competition and Consumer Commission, the government intends to prioritize addressing the technology platforms that pose the greatest harm to market competition.
According to a 2022 report by the Australian Competition Commission, Google holds a 93% to 95% share of the search engine market in Australia, while Apple’s App Store accounts for approximately 60% of app downloads, and Google Play Store makes up 40%. In the social media sphere, Meta’s Facebook and Instagram occupy a combined 79% market share.
