The BGA Australia Team led by Managing Director Mick McNeill, wrote an update to clients on Australia’s Big Tech antitrust crackdown.

Context

  • Australia has announced reforms to the digital competition framework, a key part of the government’s response to the Australian Competition and Consumer Commission’s (ACCC) recommendations in its September 2022 Digital Platform Services Inquiry interim report. Explaining the rationale of the reforms, Assistant Treasurer Stephen Jones said, “A handful of global tech giants dominate how we pay for things, what we download and how our data is used.”
  • The proposed new laws would give the minister the power to designate platforms and services and impose service‑specific obligations, with penalties for noncompliance. The government is proposing to first investigate app stores and ad tech and is seeking views on whether social media should also be prioritized. Stakeholders are requested to provide their feedback by February 14, 2025, after which further consultation on draft legislation will take place.

Significance

  • The government has looked at developments overseas, with Assistant Treasurer Jones telling the media that Australia has learned from the European Union and United Kingdom, which have taken a “slightly different approach,” while finding the Japanese approach “useful for us to look at.” The consultation paper refers to the estimated consumer benefits from similar laws in the European Union and the United Kingdom. The paper states that the proposed “hybrid model” — broad obligations and service-specific obligations — is similar to the digital competition model recently proposed by the Indian government.
  • The ACCC would oversee compliance, investigate breaches and impose penalties when necessary. Penalties are proposed to match the maximum financial penalties under the Competition and Consumer Act: US$32 million, three times the benefit obtained or 30 percent of adjusted turnover during the breach period. The government will consider whether the regime should empower the ACCC to require platforms that have implemented a structural remedy (such as measures requiring changes to the ownership structure of an entity) overseas under an equivalent international regime to roll out that same remedy in Australia.

Implications

  • The proposed framework would not adopt an all-encompassing general definition of “digital platform services.” The proposed list would include the digital platform services listed in the Ministerial Direction for the Digital Platform Services Inquiry and could substantially align with the types of “core platform services” subject to potential regulation under the European Union’s Digital Markets Act. For example, the list could include app distribution services, social media services, search engine services, web browsers and online advertising services. The framework would include an ability to update the list of specified digital platform services.
  • The government envisages that the new digital competition regime will complement other areas of reform relating to digital platforms. These include the new Scams Prevention Framework Parliament is considering, implementation of the government’s response to the Privacy Act Review, the passing of Digital ID laws, work regarding the News Media and Digital Platforms Mandatory Bargaining Code and the development of guardrails for artificial intelligence.

We will continue to keep you updated on developments in Australia as they occur. If you have any comments or questions, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More