Government to explore new laws for digital platforms

The government has offered "in-principle" backing for new laws to cover some operational aspects of digital platforms but says it will tread carefully in drafting them.

The recommendation for new laws and requirements to be placed on platform operators was made by the ACCC last year.

In particular, the ACCC raised concerns about consumer protections and the ability of the likes of Facebook, X, Instagram, Amazon and TikTok to handle disputes and prevent scams or the distribution of harmful apps.

A government response, released by Treasury [pdf] on Friday, states that further work will be undertaken to implement the ACCC's recommendations, including consulting on the development of new laws.

The federal government indicated it was open to other "economy-wide consumer measures" but noted that regulating platforms could be performed under broader actions it already has underway.

The government said the ACCC had put forward a strong case relating to “additional competition measures for digital platforms” and “targeted competition obligations”, which would require new laws.

“Under a new regime, some digital platforms could be designated to service-specific codes, which could include imposing targeted obligations and prohibitions relating to specific types of anti-competitive conduct," it said.

It added that the unique nature of the digital economy saw some platforms “play a gatekeeper” role, leading to anti-competitive practices “such as self-preferencing products and services and the creation of other barriers to competition, which have affected consumer choice and bargaining power.”

“The introduction of any new [laws] would be a significant undertaking and it would be critical to develop a framework that ensures Australians continue to enjoy the benefits of the best technology in the world," the government said.

“Part of designing the new framework would include considering the broader allocation of powers for the regulator to enforce the regime and undertake roles under other reforms.”

"The government will task Treasury to commence work on the design and form of a possible legislative framework which could enable the creation of service-specific codes," it said.

"The outcomes of this work would be informed by extensive consultation on an appropriate framework and governance model.

"In line with the evidence presented by the ACCC, the government would take a harms-based approach to prioritising this work."

ACCC chair Gina Cass-Gottlieb said it is aware that “the expansion of digital platforms in Australia has brought many benefits to Australian consumers and businesses."

“This expansion of digital platform services has also created risks and harms that our current consumer and competition laws are not always able to address," she said.

“Our analysis has identified concerning consumer and competition harms across a range of digital platform services that are widespread, entrenched, and systemic.

Meanwhile, Assistant Treasurer and Minister for Financial Services Stephen Jones said the government "wants Australians to have confidence that they can use digital platforms safely, and that they’ll be heard by the platform if something goes wrong."