26 September 2023

Worldwide digital giants in ACCC’s aim

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Large digital platform service providers, like Amazon, Apple and Google, are being put under the microscope by the Australian Competition and Consumer Commission (ACCC) which is calling for feedback from Australian consumers and businesses on their experiences of the providers’ investment practices.

Chair of the ACCC, Gina Cass-Gottlieb said platforms like Google, Amazon, Apple, Meta (Facebook) and Microsoft were “creating a web of interconnected products and services” by investing heavily across different sectors and technologies.

“Australian consumers and businesses are increasingly reliant on the products and services offered by digital platforms so it’s crucial we examine how these companies are expanding their reach,” Ms Cass-Gottlieb said.

She called for the feedback on an issues paper about their potential impacts on competition and consumers; investment decisions made by digital platforms; and the interconnectedness of expanded products and services within each ecosystem.

“We’re eager to hear from consumers and business about their experiences with digital platform services within these ecosystems, and how they also use other related consumer cloud storage services and smart home devices within a digital platform ecosystem,” Ms Cass-Gottlieb said.

“Large digital platforms have become an integral part of our daily lives, they have access to enormous user data bases and personal information across their ecosystems,” she said.

“This report will assess how that data can leveraged across products and services within an ecosystem that may prevent businesses from entering and competing.”

Ms Cass-Gottlieb said the report would examine service providers’ expansion strategies, how this had affected interoperability of products and services, and if it had inhibited competition.

She said excessive collection and problematic use of personal data or other behaviours such as dark patterns to confuse or manipulate consumers would also be considered.

“Interconnected products, like smart home devices and cloud storage solutions, can provide consumers with a seamless experience that simplifies everyday tasks, but it’s important that competition and consumers are not harmed as digital platforms invest across different sectors and technologies and expand their reach,” the ACCC Chair said.

The ACCC’s 18-page issue paper Digital Platform Services Inquiry – September 2023: Report on the expanding ecosystems of digital platform service providers can be accessed at this PS News link.

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