The Australian Government has given in-principle agreement to a series of new competition and consumer laws, as recommended by the Australian Competition and Consumer Commission (ACCC). These recommendations, aimed at addressing the harms caused by digital platforms, were made in the ACCC's September 2022 Digital Platform Services Inquiry report.

The proposed reforms call for mandatory codes of conduct for certain digital platforms to prevent anti-competitive conduct such as self-preferencing and tying. The government has also agreed in principle to address consumer harms caused by scams, harmful apps, and fake reviews. This commitment, made in late November, includes the introduction of mandatory industry codes for industries, including digital communications platforms, to address scams.

The news was warmly welcomed by the ACCC, which highlighted the positive impact it saw on smaller and medium sized businesses in particular.

"Companies like Google, Apple, Meta, Microsoft and Amazon supply services that most Australians use every day. These digital platforms are often unavoidable ‘gatekeepers’ between Australian businesses and consumers, giving them huge influence across the whole economy," ACCC Acting Chair Catriona Lowe said.

"The proposed reforms will ensure fairer and more transparent treatment of small and medium-sized businesses, allowing Australians to fully realise the benefits of participating in the digital economy. By promoting competition in these markets, the reforms will also provide consumers more choice, higher quality services, and fairer terms and conditions."

The ACCC's fifth Digital Platforms Services Inquiry report made a range of recommendations to address harms to Australian consumers, small and medium-sized businesses, and competition. These include new service-specific mandatory codes of conduct for particular 'designated digital platforms,' based on principles set out in legislation. The ACCC also proposed new obligations on all digital platforms to address scams, harmful apps, and fake reviews.

The ACCC's Digital Platforms Branch is conducting a five-year inquiry into markets for the supply of digital platform services in Australia and their impacts on competition and consumers. The eighth report, due to the Government in March next year, will examine data brokers.

Lowe also pointed out the United Kingdom, Germany, Japan and the European Union have already announced or implemented significant new competition and consumer regulations for digital platforms. She stressed the urgency of implementing these reforms in Australia.

"It is our experience that platforms rarely extend changes made in one jurisdiction to others, so it is critical that the Australian Government works quickly to implement these reforms so that consumers and small businesses aren’t left behind," Lowe added.