ACCC calls for new regime in final digital platforms report
Australia’s competition regulator the ACCC has reached the end of a journey that began eight years ago with the release of its final report into digital platforms services.
Hiding within the ACCC report’s dry title and 400-page document released yesterday are recommendations that have already begun to re-shape Australia’s digital economy and competition landscape. There are also new calls for a permanent forum of digital regulators (comprising the ACCC, ACMA, eSafety and OAIC) and to give the ACCC an ongoing mandate over AI and cloud computing.
Gina Cass-Gottlieb
The latest report makes the need for ongoing change clear in one of its subheadings: “Current laws are insufficient and regulatory reform is urgently needed”.
ACCC Chair Gina Cass-Gottlieb called for a new “regime” to impose on companies like Google, Meta, Microsoft, Apple and Tiktok rules that would moderate current anti-competitive practices.
“There is broad international recognition that there is anti-competitive conduct in digital markets that needs to be addressed. Several jurisdictions have already introduced regulation to improve competition in digital markets, including the European Union, the United Kingdom, Germany and Japan,” Cass-Gottlieb was quoted as saying.
“It is timely to progress a new digital competition regime in Australia which will increase contestability, benefit both local and foreign companies that rely on access to these platforms to conduct business in Australia, and support a growing economy.”
The ACCC has had digital platforms under a microscope from 2017 in three successive inquiries that have published 14 reports in total. In that time successive governments have created news bargaining, privacy, anti-scam and underage social media legislation to tackle the problems outlined in the reports.
That the regulator is dealing with a moving target is also clear in the final report, which has specific recommendations around generative AI and online gaming services.
Report graphic showing expansion of digital services (ACCC)
In terms of games, the report recommends in-game purchases be controlled to avoid big accidental spending, and that “loot boxes” spell out exactly what items may appear and their probability of them appearing. Loot boxes, which are mystery packages that may or may not contain valuable in-game items, have been labelled a form of gambling by critics.
As well as calling for the ACCC’s mandate to be increased to include a watching brief on generative AI, the report details consumer concerns over AI, based on a survey of 3075 Australians in late 2024. In particular, there is an overwhelming (83%) belief that platforms should seek consent before using data for model training. Meta was singled out for mention, with 89% of respondents believing that Australians should be given an opt-out to AI training. This is already available in the EU.
Mumbrella has contacted digital platforms for comment.
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topics
ACCC
ACMA
Digital Platform inquiry
Digital Platforms Services Report
eSafety
Gina Cass-Gottlieb
OIAC
The Australian Competition and Consumer Commission
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