Australia’s competition regulator on Monday advised to revise its competition laws in the wake of the rapid expansion of digital platforms like Amazon, Apple, Google, Meta and Microsoft in the country.

The reasoning provided by the Australian Competition and Consumer Commission (ACCC) behind this announcement was the increasing risk of these platforms being involved in invasive data collection and other practices. 

“Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms,” ACCC Chair Gina Cass-Gottlieb said.

ACCC has not made any specific findings of anti-competitive conduct but said digital platforms with significant market power can manipulate it to their benefit. 

As per ACCC, these digital platforms can utilise their market hegemony such as the bundling of products, and pre-installation and default settings to limit customer choice or deter innovation from competitors. 

When it comes to data collection, ACCC found that these providers have greater access to rich consumer data via expansion, which is unfair to other digital platforms For example, Amazon, Apple and Google collect vast amounts of consumer data through smart home devices. It’s not always clear from the relevant privacy policies if the data collected exceeds that which is needed for device functionality or product improvement.

The regulator has also proposed new mandatory obligations on all digital platforms to address scams, harmful apps, and fake reviews, including notice and action requirements and stronger verification of business users and reviews.

The report also considers the role of digital platform providers in developing emerging technologies. The five largest digital platforms, mentioned earlier, are making investments in research and development and buying other smaller companies in areas such as generative AI to ensure they remain in comfortable positions in the developing digital economy.

“The critical role digital platform service providers have in the development of new technologies like artificial intelligence and cloud computing demonstrates their importance to the Australian economy, now and in the future,” Cass-Gottlieb said.

(With inputs from agencies)