The Australian government has called for reforms of digital platforms in a move tha could see more regulation of Companies such as Amazon, Facebook, Instagram Tik Tok and Google, who it’s claimed are not delivering when it comes to the resolution of issues surrounding their operations in Australia.
The Australian Competition and Consumer Commission’s (ACCC) Digital Platform Services Inquiry claims more robust measures are needed to protect businesses and consumers from the harms that digital platforms are causing in Australia.
The move is set result in new competition and consumer laws after it was revealed that “Australian consumers and small businesses are finding it hard to achieve quick and easy resolution of complaints and disputes with digital platforms”.
ACCC Acting Chair Catriona Lowe said, “Companies like Google, Apple, Meta, Microsoft, and Amazon supply services that most Australians use every day. These digital platforms are often unavoidable ‘gatekeepers’ between Australian businesses and consumers, giving them huge influence across the whole economy.”
As a result, they have a large amount of control and influence which several Governments around the world including the UK, USA and EU are trying to reel in.
Earlier this year the EU told Google that it was their opinion that the company breached EU antitrust rules by distorting competition in the advertising technology industry.
Amazon is also under investigation in the USA.
The ACCC claim that there are several issues such as or termination of a user’s accounts, scam content, harmful apps and fake reviews as areas where disputes can arise with both business and consumers struggling to get determination.
As part of the agreement, the government is asking members of the digital platforms industry to draw up a voluntary internal dispute resolution framework by July 2024.
“The proposed reforms will ensure fairer and more transparent treatment of small and medium-sized businesses, allowing Australians to fully realise the benefits of participating in the digital economy. By promoting competition in these markets, the reforms will also provide consumers more choice, higher quality services, and fairer terms and conditions.”
FILE PHOTO: The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, November 15, 2022. REUTERS/Pascal Rossignol
In response, the government pledged to establish compulsory industry codes for industries including digital communications platforms to address scams.
Lowe said that other countries have already begun work on their own regulations and Australia should be in that list of proactive countries in terms of protecting businesses and consumers from digital platforms.
“The United Kingdom, Germany, Japan and the European Union have already announced or implemented significant new competition and consumer regulations for digital platforms,” Lowe said.
“It is our experience that platforms rarely extend changes made in one jurisdiction to others, so it is critical that the Australian Government works quickly to implement these reforms so that consumers and small businesses aren’t left behind.”
