Australian Treasury’s regulation proposal signals tougher approach to platforms

New legislative framework targets anti-competitive behaviors of large digital platforms to boost national productivity.

David Kennedy · Venture Insights5 December 2024Period: Q4 20244 min read

$50 million→

Maximum flat fine for compliance breaches

30%→

Maximum penalty based on adjusted turnover

Locked

Companies covered:

Abstract

This report analyses the Australian Treasury's new proposal for a legislative regime to regulate the economic power of digital platforms. The framework introduces ex ante provisions targeting anti-competitive behaviors such as self-preferencing and tying, aligning Australia with European regulatory approaches. By addressing excessive market power in sectors ranging from app marketplaces to ad tech, the proposal aims to maintain competitive markets and reverse declining productivity growth caused by increasing digitalization and platform-driven oligopolies.

Key Takeaways

The Australian Treasury has proposed a new ex ante regulatory regime to target the economic power of large digital platforms.
Designated platforms must avoid self-preferencing and tying products, with penalties reaching up to 30% of adjusted turnover.
The framework initially prioritizes regulation for app marketplaces and ad tech services to ensure fair treatment of business users.

Create a free account to keep reading

stakeholder implications · PDF download

Frequently Asked Questions

Companies found in breach face penalties of up to 30% of their adjusted turnover or a flat fine of $50 million. In cases where a specific financial gain is identified, the penalty can escalate to 3x the total benefit obtained from the breach.

The regulatory framework initially prioritizes app marketplaces and ad tech services to curb anti-competitive behaviors. The ACCC will use quantitative and qualitative metrics to designate which 'large' platforms must comply with these new ex ante provisions.

The window for public consultation is short, with all submissions due by 14 February 2025. This deadline is the final opportunity for industry participants to influence the legislative design before it moves toward formal adoption.

This proposal shifts Australia toward the ex ante regulatory models already established in the European Union and the United Kingdom. The framework specifically targets self-preferencing and product tying to harmonize international enforcement against platform monopolies.

Australian Treasury’s regulation proposal signals tougher approach to platforms

Abstract

Key Takeaways

Frequently Asked Questions

Unlock the full report

Free

Lite

Team