Call for laws to stop harm to consumers, firms online

Perth Now

3 hours ago

Australia needs new laws and regulations to prevent significant harm to consumers and businesses from the exploitative practices of US tech giants.
The Australian Competition and Consumer Commission issued the warning in its final Digital Platform Services report on Monday, following five years of monitoring social networks, online marketplaces, app stores and search engines.
The 408-page report issued six recommendations but also raised future areas of concern including a lack of competition in cloud computing and artificial intelligence (AI) services, and risky behaviour involving online video games.
The report comes six months after the federal government launched a public consultation into digital competition proposals, and after several tech firms complained to US officials about Australia's current digital media laws.
The commission's tenth and final report highlighted four existing and two new recommendations to address anti-competitive and harmful behaviour from online platforms, and chair Gina Cass-Gottlieb said existing laws were not equipped to protect Australians.
"While these services have brought many benefits, they have also created harms that our current competition and consumer laws cannot adequately address," she said.
"This is why we continue to recommend that targeted regulation of digital platform services is needed to increase competition and innovation and protect consumers in digital markets."
Existing recommendations included a ban on unfair trading practices, enforceable codes of conduct for designated digital platforms including competition protections, and mandatory processes to help consumers, including removing scams and harmful apps, verifying advertisers, and introducing a digital ombudsman to handle disputes.
A consumer survey conducted for the report found more than eight in 10 Australians supported the introduction of an independent dispute resolution body to handle complaints.
Support was highest for the policing of general online marketplaces, like Amazon, Temu and eBay, followed by social networks such as Facebook, Instagram and LinkedIn, and online messaging platforms.
The report also recommended the continued monitoring of online services and a permanent Digital Platform Regulators Forum comprised of existing media regulatory bodies to collaborate on streamlined legal reforms.
Future areas of concern for the commission included the regulation of digital video games, such as the risk of accidental in-game spending, consumer harm from paid loot-boxes, and clear purchasing contracts.
The report also noted concerns about a lack of competition in generative AI services and cloud computing, which could be dominated by firms including Amazon, Microsoft and Google.
"Harms to competition in the generative AI sector could hamper innovation, result in lower quality products and services, and force Australian businesses and consumers to pay more than they otherwise would to utilise this technology," Ms Cass-Gottlieb said.
"It is critical that the proposed digital competition regime enable the ACCC to continue monitoring changes to services it has previously examined, as well as new technologies that emerge over time."
The report completes the inquiry called by then-treasurer Josh Frydenberg in February 2020, and the Labor government has since committed to several changes based on its recommendations, including a ban on unfair trading practices.
The government's consultation into proposed digital competition changes, including laws to govern app marketplaces, online advertising and social media, closed in February.