Australia’s competition watchdog is ramping up pressure on the Albanese government to push through long-awaited laws that would force Apple and Google to open their devices to rival app stores and alternative payment systems.

Australian Competition and Consumer Commission (ACCC) chair Gina Cass-Gottlieb (pictured below) said the reforms would mirror changes in Europe, where new rules have already led to the launch of several competing app stores and greater choice for developers and consumers.

Under current settings, Apple and Google largely block third-party app stores and often require developers to use their in-house payment systems, taking commissions of up to 30%.

By contrast, Epic Games, which operates its own store overseas, charges no commission on the first $1 million in revenue and 12% above that threshold.

Cass-Gottlieb said the potential savings would flow across the economy, given how widely apps are used by businesses and consumers.

“When you look at the benefits in jurisdictions that have made this change, it makes a real difference,” she said.

The push has won backing from the Australian Banking Association, with chief executive Simon Birmingham (pictured below) calling for Australia to follow Europe’s lead to “level the playing field”.

The ACCC first raised concerns about app store competition in 2021 and has already drafted rules that would force Apple and Google to open their platforms and ban so-called “anti-steering” provisions that stop developers directing users to cheaper payment options. But it is still waiting for the government to pass enabling legislation.

Apple and Google argue their restrictions are necessary for privacy and security.

The issue has also played out in the courts. Last year, the Federal Court found the companies’ dominance of the app market was likely leading to higher commissions than would exist in a more open market, in a case brought by Epic Games.

The government has shown a willingness to challenge big tech on issues such as social media and news payments, but any move against US tech giants risks diplomatic friction with Washington.