The Australian Competition and Consumer Commission (ACCC) has concluded its five-year inquiry into digital platform services, highlighting the urgent need for regulatory reforms to address harmful practices affecting consumers and businesses. ACCC Chair Gina Cass-Gottlieb emphasized that while digital platforms have driven productivity growth, they have also introduced significant risks that current competition laws cannot adequately manage.

The report identifies ongoing consumer harms, such as manipulative design practices that lead to unfair trading experiences, including accidental subscriptions and hidden fees. A staggering 72% of surveyed Australian consumers reported encountering unfair practices online, underscoring the necessity for a prohibition on such practices to safeguard consumer interests.

Additionally, the ACCC advocates for the establishment of an independent external dispute resolution body to assist consumers and small businesses in resolving complaints against digital platforms. This body would be crucial for addressing issues like fake reviews and account deactivations that hinder small businesses' access to customers.

The inquiry also revealed anti-competitive behaviors among major digital platforms, including self-preferencing and exclusivity agreements, which distort competition and lead to higher prices and reduced choices for consumers. The ACCC calls for a new digital competition regime to enhance market contestability and support both local and foreign businesses operating in Australia.

Emerging technologies, particularly cloud computing and generative AI, present additional competition risks that require ongoing scrutiny. The ACCC's report warns that major cloud providers may engage in anti-competitive practices that could stifle innovation and inflate costs for Australian consumers and businesses. To mitigate these risks, the proposed digital competition regime must empower the ACCC to monitor and address changes in the digital landscape effectively.

The ACCC's findings have been acknowledged by the Australian Government, which supports the development of a new digital competition regime to better regulate the digital economy and protect consumers.