Australia introduced a legislative proposal on Monday that could impose penalties of up to A$50 million ($33 million) on international technology firms found to be stifling competition and hindering consumer choice in service switching.
The centre-left Labor government is focusing on the significant influence of Big Tech, having recently enacted a law that prohibits social media access for children under 16.
This proposed legislation would grant Australia's competition regulator the authority to ensure compliance, investigate online anti-competitive behaviors, and impose fines on offending companies, as stated by Assistant Treasurer Stephen Jones in excerpts from a speech scheduled for later on Monday.
"The digital economy presents challenges to our existing legal framework," Jones is expected to say in his address at the McKell Institute in Sydney, a public policy research organization.
"Dominant platforms can impose higher prices, limit choices, and employ deceptive strategies to keep consumers tied to specific products. This makes it nearly impossible for new innovations to emerge outside of established companies."
Apple, Google, and Meta, which lead in app downloads and advertising revenues, have not yet provided comments regarding the proposed legislation.
The consultation period is set to conclude on February 14, with further discussions planned to refine the draft legislation.
This proposed law, akin to the European Union's Digital Markets Act, aims to facilitate easier transitions for users among competing services, including social media platforms, web browsers, and app stores.
Following recommendations from the Australian Competition and Consumer Commission, the government intends to identify platforms that pose the highest risk to competition.
"Initially, we will focus on app marketplaces and advertising technology services for specific obligations," Jones is expected to announce.
These particular requirements would limit companies from promoting their applications with poor user ratings to the forefront of their search results and would also prohibit preferential treatment of their own offerings in comparison to those of third-party providers.
A 2022 report from the competition commission regarding digital platform services indicated that Google held a dominant share of 93% to 95% of online search services in Australia, while Apple's App Store represented approximately 60% of app downloads, with Google Play Store accounting for 40%.
In Australia, Meta Platforms' Facebook and Instagram collectively provided 79% of social media services.