26 September 2023

ACCC takes investigation to market

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The Australian Competition and Consumer Commission (ACCC) is to examine concerns relating to the competition and consumer activities of organisations such as eBay Australia, Amazon Australia, Kogan and Catch.com.au as part of its inquiry into digital platform services in Australia.

Chair of the ACCC, Rod Sims said the Commission would examine the marketplaces and their relationships with third-party sellers and consumers, as well as how the marketplaces affected competition in Australian markets.

“General online retail marketplaces allow sellers to list a range of products which can be searched for, found and purchased by consumers,” Mr Sims said.

“These marketplaces compete against each other, as well as against so-called bricks and mortar businesses, to attract both buyers and sellers,” he said.

“These online marketplaces are an important and growing segment of the economy, so it is important that we understand how online marketplaces operate and whether they are working effectively for consumers and businesses.”

Mr Sims said the ACCC wanted to be sure that the rules which applied to traditional retail were also complied with in the online context.

The Chair of the Commission said the ACCC was keen to receive submissions from consumers, platforms and third-party sellers on its issues paper Digital Platform Services Inquiry – March 2022 Report on general online retail marketplaces to inform its inquiry.

He said the ACCC would consider pricing practices; the use of data; the terms and conditions imposed on third-party sellers; and the impacts on competition when the marketplace itself operated as a seller on the platform.

“Key consumer issues to be considered include the ability of customers to leave and read reviews of sellers and products, how complaints are handled and how consumers’ data is collected and used,” Mr Sims said.

“We are keen to hear about the experiences of Australians, both consumers and businesses.”

Mr Sims said submissions to the inquiry were open until 19 August.

The ACCC’s 19-page Issues Paper, including information on how the have a say, can be accessed at this PS News link.

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