Google and Apple targeted in new competition crackdown on tech giants

Google and Apple would face huge fines for anti-competitive behaviour as the Federal Government widens its assault on big tech.

Assistant Treasurer Stephen Jones will announce plans on Monday to hand the consumer watchdog sweeping new powers to combat the market domination of digital giants.

Under the Government’s proposed crackdown, the minister would have the power to impose obligations on “designated” platforms and services to prevent anti-competition conduct.

The first two services in the Government’s crosshairs are advertising tech, where Google is the dominant player, and app stores, where Apple and Google control the market.

The extent of Google’s domination was laid bare in the Australian Competition and Consumer Commission‘s digital platforms inquiry, which found it provided between 93-95 per cent of general search services in the decade through to 2022.

The Government will also seek feedback on whether social media platforms should be targeted first up, creating another front in the war on the likes of Facebook and Instagram after laws to ban under-16s from using them passed Federal Parliament last week.

ACCC chair Gina Cass-Gottlieb has been pushing for new powers to tackle the “gatekeeper” platforms that use anti-competitive tactics to entrench their market share.

“Digital platform services markets are fast-moving and our regulation must be able to keep pace with the rate of technological change,” she said in a 2023 speech outlining the case to place obligations on specific platforms.

“For these reasons, we consider new regulatory tools are necessary.”

In one example of an obligations that would be imposed on app stores under the Government’s regime, the marketplaces would be banned from prioritising their own apps in search results even when a competitor offers a better option.

The tech giants would face fines of up to $50 million, or 30 per cent of turnover, for breaching the obligations.

Initial consultation on the digital competition regime will run until mid-February before the Government finalises the laws.

“The purpose of this new framework is to drive better outcomes for consumers,” Mr Jones will say in a speech to The McKell Institute thinktank on Monday.

“Healthy competition in the economy should mean consumers can buy from businesses that offer quality products that consumers want.

“Big businesses can provide quality, but consumers should be able to choose to buy from them. This framework will lead to more choice, lower prices and fairer outcomes for consumers.”

The ACCC will provide advice on which platforms should be captured, investigate potential breaches of the obligations and impose penalties.