The Australian Competition and Consumer Commission (ACCC) has concluded a comprehensive five-year inquiry into digital platforms, resulting in a report that advocates for new regulations to address consumer harms and anti-competitive practices.

The report emphasizes the necessity for regulatory reform in Australia's digital markets to enhance competition and protect consumers, ensuring that digital platform services continue to benefit both Australian consumers and businesses.

ACCC Chair Gina Cass-Gottlieb pointed out that while digital platforms are essential for economic growth, existing laws are insufficient to prevent harmful practices that disadvantage consumers and small businesses.

A significant finding from an ACCC survey indicated that 72% of Australian consumers have faced potentially unfair online practices, with 82% supporting the establishment of a specialized body to resolve disputes with digital platforms.

Key recommendations from the report include a ban on unfair trading practices, the creation of an external dispute resolution body for digital platform services, and a comprehensive digital competition framework.

The ACCC noted that a lack of competition could result in higher prices and fewer choices for consumers, highlighting that other jurisdictions have already implemented similar regulations.

Small businesses are particularly at risk from issues such as fake reviews and account deactivations on digital platforms, which can significantly hinder their access to customers.

The report also raises concerns about emerging technologies like cloud computing and generative AI, warning that major players may engage in harmful practices that stifle innovation and competition.

Additionally, the report addresses anti-competitive behaviors by dominant platforms, including self-preferencing and exclusivity, which undermine fair competition and harm consumers.

Cass-Gottlieb noted that international efforts are underway, with countries like the EU, UK, Germany, and Japan already taking steps to combat anti-competitive conduct in digital markets.

The ACCC's findings have been accepted by the Australian Government, which began consultations in December 2024 to implement a new digital competition regime.

Ultimately, the ACCC emphasizes the need for targeted regulation to enhance competition, protect consumers, and foster innovation within digital markets.