Australia has proposed a landmark law to impose fines of up to A$50 million on global tech giants for anti-competitive practices, sparking heated debate on the future of the digital marketplace.
“This is about leveling the playing field,” said Assistant Treasurer Stephen Jones, addressing attendees at the McKell Institute. “The digital economy challenges our current legal framework. Dominant platforms are charging higher costs, reducing choices, and locking consumers into their ecosystems. We need to act now.”
The centre-left Labor government has taken a firm stance on Big Tech, following last week’s passage of a law banning social media access for children under 16. Jones emphasized that the proposed legislation would empower the Australian Competition and Consumer Commission (ACCC) to investigate and fine tech companies engaging in anti-competitive behavior.
“Our focus is clear,” Jones added. “We’re starting with app marketplaces and ad tech services. Platforms must stop prioritizing their own low-rated apps and giving unfair advantages to their services.”
The law mirrors the European Union’s Digital Markets Act and aims to ease the switch between competing platforms like social media, internet browsers, and app stores. The consultation process will continue until February 14, followed by further discussions to finalize the draft.
“Innovation outside Big Tech is stifled,” Jones remarked. “We’re sending a clear message: Australia won’t allow monopolistic practices to dominate.”
Tech giants like Google, with a 93% share of online search services in Australia, and Apple, commanding 60% of app downloads, could face unprecedented scrutiny. Meta’s Facebook and Instagram, supplying 79% of social media services, are also in the spotlight.
“It’s time to give power back to the consumers,” Jones concluded. “This isn’t about punishing success; it’s about fostering fair competition.”
