The ACCC is calling for regulation of digital giants to protect consumers and competition.

In a recent opinion piece, Australian Competition and Consumer Commission (ACCC) Chairwoman Gina Cass-Gottlieb highlighted the urgent need for regulatory measures against the market dominance of digital giants such as Apple, Google, and Meta. 

This call to action comes amid rising concerns over the impact of these corporations on competition and consumer welfare in Australia.

Cass-Gottlieb pointed out that the significant market power wielded by these digital platforms affects not just the digital economy but also the broader Australian economy by influencing consumer spending and competition. 

She noted that Australian consumers and businesses are increasingly reliant on digital services, evidenced by Australians downloading 790 million apps and spending over $3.4 billion on apps and in-app purchases in 2022 alone.

The ACCC chair criticised the high commissions of 15 per cent to 30 per cent that Apple and Google impose on app payments, which starkly contrast with the lower fees charged by traditional payment processors. 

Such practices, according to Cass-Gottlieb, disadvantage both consumers and app developers by artificially inflating costs.

Furthermore, Cass-Gottlieb highlighted the dominance of Google in the online advertising sector, where Australian businesses spent $14.2 billion last financial year. 

She argued that the lack of transparency in ad tech services results in higher advertising costs, which could be reduced through regulatory intervention.

The opinion piece also referenced the 2021 incident where Facebook (now Meta) temporarily blocked news content to Australian users, demonstrating the potential for digital platforms to impact public access to information. 

Cass-Gottlieb suggested that this event underscored the necessity for regulatory frameworks that could mitigate such power imbalances.

Looking internationally, Cass-Gottlieb praised the efforts in the United Kingdom, Germany, the European Union, Japan, and South Korea to introduce comprehensive competition regulations for digital platforms. 

She advocated for Australia to follow suit, proposing new mandatory codes of conduct that would ensure more consumer choice, transparent advertising services, and enhanced data privacy.