Digital Platform Services Inquiry – submissions sought

The Australian Competition and Consumer Commission (ACCC) has released its seventh report of the Digital Platform Services Inquiry and has invited submission from interested stakeholders by 5 April 2023.  The information sought by the ACCC revolves around the activities of digital platform service providers use of strategies like bundling to limit competition and create technological lock-in.  Information is also sought about the extent of penetration into the smart home devices, cloud storage sectors by Digital Platforms.

What is a digital platform ecosystem?

The ACCC defines digital platform ecosystem to mean:

“the wide range of interrelated products and services – whether interrelated through technical interoperability or by commercial practices such as bundling – offered by a single or related group of companies.”

What is the significance of digital platform services?

The ACCC acknowledges how some of the top digital service providers in the world such as Alphabet (Google), Amazon, Apple, Meta (Facebook) and Microsoft are expanding the possible services that they may make available.  This includes developing products in areas like AI, VR, virtual assistants, education, health, fitness, media streaming, home connected devices, gaming, clouds, and financial technology.  The ACCC’s focus for submissions from stakeholders is on smart home devices and cloud storage.

The reason for seeking submission is to explore relationships between interconnected digital service platforms and any potential competition or consumer law issues that may arise.

What is the purpose of the inquiry?

The ACCC is aiming to investigate how expansive digital ecosystems may be potentially harmful to competition, consumerism, and business in general.  The issued report acknowledges that whilst platform expansion can encourage competition, these global large providers can inhibit competitors from participating in the market and may limit the opportunity to create a competitive market.  The inquiry aims to understand what specific consumer risks there are and their potential impact.

Some issues raised by ACCC include:

• Risk of dark patterns – when user interfaces (UIs) are made to confuse users and make it difficult to express their preferences.
• Certain ecosystems may limit choice for consumers (for example the fact that a consumer owns a Samsung phone limits them from buying an Apple Watch if they wish since the Apple Watch is only compatible with the iPhone).

You can find further information on the Digital Platform Services Inquiry and how to make a submission here: Digital platform services inquiry 2020-25. The ACCC encourages stakeholders to make submissions by 5 April 2023.

Links and further references

Digital platform services inquiry 2020-25

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Disclaimer

This article contains general commentary only.  You should not rely on the commentary as legal advice.  Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.

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