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
Further information about online business
If your business needs advice on compliance with any aspect of online business, contact us for a confidential and obligation-free discussion:
Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.
Legal Practice Director
T: +61 7 3221 0013 (preferred)
M: +61 419 726 535
E: mburrows@dundaslawyers.com.au
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.
Related insights about online business
-
Misinformation and Disinformation Bill 2023 – exposure draft
The Communications Legislation Amendment (Combatting Misinformation and Disinformation) Bill 2023 (Cth) (Misinformation Bill) was announced by the Department of Infrastructure, Transport, Regional Development, Communication and the Arts (DITRDCA) in January 2023. The Misinformation Bill is aimed at restricting the flow of misinformation and disinformation by providing the Australian Communications and Media Authority (ACMA) with increased…
-
What are adequate cyber security measures?
The adequacy of cyber security measures was considered in the case of Australian Securities and Investments Commission v RI Advice Group Pty Ltd [2022] FCA 496 (ASIC v Ri Advice Group). One of the issues raised was whether the respondent had adequate cyber security and cyber resilience in place across its network of financial advisors. …
-
National Classification Scheme – proposed federal reforms
Albanese Government announces intention to reform National Classification Scheme, proposing R18+ for games simulating gambling and M for computer games with paid loot boxes/in-game purchases linked to chance. Learn more about proposed reforms and if simulated gambling needs to be addressed.
-
Digital Platform Services Inquiry – submissions sought
The Australian Competition and Consumer Commission is investigating the activities of digital platform service providers and their impact on competition, consumerism, and business. Have your say and make a submission by 5 April 2023. Learn more in the seventh report of the Digital Platform Services Inquiry.
-
ASIC commences legal proceedings against alleged “greenwasher”
The Australian Securities and Investments Commission launched its first Court action against a business for alleged greenwashing. Find out what this means for businesses and sustainability practices, and discover what measures must be taken to ensure compliance with the law.
-
Australian legislation addresses loot boxes in video games
The Classification (Publications, Films and Computer Games) Amendment (Loot Boxes) Bill 2022 (Bill) has been tabled in the House of Representatives on the 28 November 2022. The private member’s Bill acts in response to growing support for the regulation of features and elements within video games which appear to simulate gambling.
-
Digital Games Tax Offset proposed by Albanese
The Albanese Labor Government has proposed a Digital Games Tax Offset (DGTO) of 30%, encouraging the growth of the digital games industry in Australia. Learn more about the DGTO and how it will create more jobs and international competitiveness.
-
Influencers finally regulated when promoting therapeutic goods
The Therapeutic Goods Advertising Code 2021 (Cth) (2021 TGA Code) brings regulations for social media endorsements of therapeutic goods. Learn more about the changes and how to ensure compliance before they take effect on 1 January 2022.
-
Implied terms in software contracts – part 2
This article examines the concept of implied terms in software contracts, including the requirements for implying a term, the process of determining implied terms, and examples of implied terms applied in software agreements.
