An Australian regulator calls for new competition laws for digital platforms. In reaction to the quick rise of digital platforms like Amazon (AMZN.O), Apple (AAPL.O), Google (GOOGL.O), Meta (META.O), and Microsoft (MSFT.O) in Australia, the competition watchdog stated on Monday that new competition rules were necessary.
In its most recent report for the Digital Platform Services Inquiry, the Australian Competition and Consumer Commission (ACCC) expressed concerns about how the growth of these platforms has raised the possibility that they will engage in harmful practices like intrusive data collection and practices that limit customers’ options and lock them in.
“Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms.” Gina Cass-Gottlieb, chair of the AC
The ACCC has stated that digital platforms with substantial market dominance may employ product bundling, pre-installation, and default settings to restrict customer choice or stifle rival innovation. However, the ACCC has not made any specific findings about anti-competitive behavior.
When Reuters reached out to digital sites for comment, they did not reply correctly immediately regarding data collection methods. The ACCC discovered that these suppliers have more expansion-related access to rich customer data, and it’s not always evident from the pertinent privacy rules if the data obtained goes beyond what’s necessary for improved product functionality or device performance.
The regulator has also suggested additional criteria for all digital platforms to combat fraud, malicious applications, and phony reviews. These requirements include notice and action requirements and more stringent authentication of business users and reviews.
According to the ACCC, it is imperative to ensure competition rules are appropriate for addressing the possible obstacles presented by cutting-edge technologies like virtual reality and generative AI.
Earlier this year, the ACCC said it would conduct a five-year investigation of the nation’s rapidly changing digital platform service provider ecosystem.
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