Australia proposes a digital competition regime to fine big tech for unfair practices

The Australian government has proposed a new regime to monitor and promote competition in the technology sector. The new regime aims to give consumers more choice and lower prices. 

Reuters reports that the bill will allow regulatory authorities to "oversee compliance, investigate breaches, and impose penalties when necessary." The fines will match the financial penalties under the Australian Competition and Consumer Act, which are "$50 million, three times the value of the benefit obtained or 30% of adjusted turnover during the breach period."

The regime aims to safeguard smaller businesses against unfair competition and will demand transparency in "ad costs, performance, and platform practices." The Australian Competition and Consumer Commission (ACCC) will oversee the regime.  

"The digital economy challenges our current legal framework," Assistant Treasurer Stephen Jones said in a speech viewed by Reuters. "The dominant platforms can charge higher costs, reduce choice, and use sneaky tactics to lock consumers into using certain products. Innovation outside of the established players becomes almost impossible," Jones added. 

The bill is open for consultations till February 14, 2025, after which a draft legislation will be formed. Big Tech has recently been in the eye of the storm in Australia. The country has also passed a controversial law that bans social media for kids under 16.