The BGA Australia Team led by Managing Director Fergus Hanson, wrote an update to clients on the release of a new report that could shape ongoing dynamics on digital platform competition.

Context

  • The Australian Competition and Consumer Commission (ACCC) has released a significant report that recommends legislated consumer protections and legally binding codes of conduct in relation to digital platform competition. The government will respond to the release shortly.
  • This is the fifth interim report of the 2020-25 ACCC Digital Platform Services Inquiry. The recommendations are informed by findings to this point and the separate ACCC 2021 Digital Advertising Services Inquiry — the Ad Tech Inquiry. The ACCC has been considering the competition and consumer impacts of digital platforms since 2017 and will align Australia with emerging international competition reforms for digital platforms.

Significance

  • The ACCC’s report identifies “significant consumer and competition harms” across multiple digital platform services and recommends service-specific codes of conduct to address competition concerns.
  • These codes would only apply to designated digital platforms that meet clear criteria relevant to their incentives and ability to harm competition. The obligations would apply to digital platforms providing search functions, social media, online private messaging, app stores, online retail marketplaces and digital advertising services.

Implications

  • The report paves the way for changes that could take shape over time. The ACCC recommends mandatory processes to prevent and remove scams, harmful apps and fake reviews. It also calls for minimum standards for digital platform dispute-resolution processes and an ombuds scheme to protect consumers and small businesses and that could compel information disclosure, make binding decisions on digital platforms and award compensation.
  • Movement will be important to track for companies in the coming months. Competition Minister Andrew Leigh said the government is considering the ACCC’s recommendations and will consult publicly to seek the views of stakeholders. Following government response, consultation and passage through Parliament, BGA expects changes to take effect within the next 18 months.

BGA 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 Fergus Hanson at fhanson@bowergroupasia.com.