Australia Proposes New Law to Fine Big Tech Over Anti-Competitive Practices

Australia has introduced a proposed law that could impose fines of up to A$50 million (around $33 million) on major global tech companies found to be stifling competition or hindering consumers from easily switching between digital services.

Announced on Monday, the law targets the growing influence of Big Tech and is part of a broader effort by the centre-left Labor government to regulate the digital economy. This follows the recent passage of a law that bans social media use for children under 16.

The proposed law would grant Australia’s competition regulator the authority to monitor compliance, investigate anti-competitive practices, and impose penalties on companies. In a speech at the McKell Institute in Sydney, Assistant Treasurer Stephen Jones emphasized that the digital economy is outpacing the country’s existing legal framework, allowing dominant platforms to inflate costs, reduce consumer choice, and use deceptive tactics to lock users into their ecosystems. “Innovation outside of the established players becomes almost impossible,” Jones stated.

Major tech firms like Apple, Google, and Meta, which dominate app downloads and digital advertising, have yet to respond to inquiries regarding the proposed legislation.

The consultation period for the law will conclude on February 14, after which further discussions will refine the draft legislation. If passed, the law will resemble the European Union’s Digital Markets Act, aiming to make it easier for consumers to switch between competing services, including social media platforms, web browsers, and app stores.

The Australian government will prioritize platforms that pose the greatest risk to competition, focusing initially on app marketplaces and ad-tech services. Companies would be restricted from promoting their own apps with low user ratings and from offering preferential treatment to their own services over third-party options.

According to a 2022 report from the Australian Competition and Consumer Commission, Google dominates online search in Australia with a market share of 93% to 95%, while Apple’s App Store holds around 60% of app downloads and Google Play Store 40%. Meta’s Facebook and Instagram together account for 79% of social media usage in the country.