((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Australia on Monday proposed a law that could impose fines of up to A$50 million ($33 million) on global technology companies if they suppress competition and prevent consumers from switching from one service to another. other.
The centre-left Labor government has taken on the influence of big tech companies and parliament last week passed a law banning social media for children under 16.
The proposed law would allow Australia's competition regulator to oversee compliance, investigate anti-competitive practices online and fine businesses, Deputy Treasurer Stephen Jones said in extracts from 'a speech expected later on Monday.
“The digital economy challenges our current legal framework,” Mr Jones said in the speech seen by Reuters at Sydney's McKell Institute, which specializes in public policy research.
“Dominant platforms can charge higher costs, reduce choice and use underhand tactics to lock consumers into using certain products. Innovation outside of established players becomes almost impossible”
Apple AAPL.O , Google GOOGL.O and Meta META.O , which dominate app downloads and advertising revenue, did not respond immediately when asked to comment on the proposed law.
The consultation process is expected to conclude on February 14 and further discussions will be held to prepare the bill.
The bill, similar to the European Union's Digital Markets Act, could make it easier for people to move between competing services, such as social media platforms, internet browsers and app stores.
Based on advice from the Australian Competition and Consumer Commission, the government can choose platforms that pose the greatest risk of harming competition.
“Initially, we will seek to prioritize app marketplaces and ad tech services to be subject to service-specific obligations,” Mr Jones said.
These specific obligations would prevent companies from putting their applications that are poorly rated by users at the top of searches and from granting favorable treatment to their own services compared to those of third parties.
A Competition Commission report on digital platform services in 2022 showed Google controlled 93% to 95% of online search services in Australia, while Apple's App Store accounted for around 60% of downloads of applications and the Google Play Store 40%.
Facebook and Instagram, owned by Meta Platforms, together provided 79% of social media services in the country.
($1 = 1.5359 Australian dollars)
