Major Updates in Australian Competition Law and Policy 2024
umer seeking information on financial hardship may be labelled as a vulnerable consumer and subsequently targeted with high-interest loans. The report also includes case studies of data breaches and fraud incidents involving data firms that have caused harm to both consumers and businesses.
To address these issues, the ACCC suggests implementing guidelines to improve transparency and accountability regarding data collection, use, and sharing practices. The ACCC also recommends industry self-regulation, enhanced enforcement by regulators, and potential legislative reforms to protect consumers’ data rights. The ACCC plans to continue monitoring data firm practices and working with other regulators to ensure compliance with consumer protection laws.
ACCC’s ninth interim DPSI report
On 9 December 2024, the ACCC released the ninth interim DPSI report, which focuses on potential competition and consumer issues associated with the provision of digital content. Digital content is a broad term that encompasses digital goods (e-books, games, software), digital services (music and video streaming services), and apps. The ACCC finds that many digital content markets in Australia are characterized by high levels of market concentration, with significant market power held by large platforms that control access to users and content providers.
The report notes that this market power can lead to a range of concerns, including reduced innovation and choice for consumers, reduced rewards for creators and content producers, and higher prices. The ACCC also highlights issues related to app stores’ practices, including the use of exclusivity arrangements, self-preferencing, and unclear terms and conditions. These practices can restrict competition, limit consumer choice, and disadvantage smaller players in the market.
To address these issues, the ACCC recommends implementing rules that promote competition and protect consumers, including mandating transparency around ranking algorithms, prohibiting certain conduct that harms competition, and ensuring fair treatment for content creators. The ACCC also suggests introducing mechanisms to resolve disputes between digital platforms and content providers and enhancing oversight of digital markets by regulators.
Overall, the ACCC’s DPSI reports provide valuable insights into the challenges and opportunities presented by digital markets in Australia. By addressing competition and consumer issues head-on, the ACCC aims to create a fair and competitive digital ecosystem that benefits both businesses and consumers.
Epic Games’ Federal Court action against Apple and Google
On 13 November 2024, Epic Games filed a lawsuit in the Federal Court of Australia against Apple and Google, alleging that the tech giants engaged in anti-competitive behavior by imposing restrictive rules and taking excessive commissions on app transactions. The lawsuit follows similar actions taken by Epic Games in other jurisdictions, including the United States and the European Union, which have focused on App Store and Play Store practices.
Epic Games, the developer of popular games such as Fortnite, argues that Apple and Google’s app store policies stifle competition, limit choice for consumers, and harm developers by extracting high fees from in-app purchases. Epic Games also contends that Apple and Google use their market power to maintain a stranglehold on app distribution and payment processing, preventing developers from reaching customers through alternative channels.
The lawsuit seeks to challenge the existing app store duopoly and establish fairer terms for developers and consumers. If successful, the case could have significant implications for the app store business model and competition in the digital ecosystem. The outcome of this legal action will be closely watched by industry stakeholders, regulators, and consumers alike.
ACCC’s Supermarkets Inquiry and separate proceedings against Woolworths and Coles
The ACCC continued its scrutiny of the grocery sector in 2024 through its ongoing Supermarkets Inquiry, which focuses on competition issues in the supply chain, acquisitions, and market conduct of major supermarket chains. The inquiry, which commenced in November 2022, aims to assess the impact of competition on consumers, suppliers, and smaller market participants.
In parallel with the inquiry, the ACCC initiated separate legal proceedings against Woolworths and Coles regarding alleged anti-competitive conduct in their dealings with suppliers. The ACCC alleges that both supermarket chains engaged in unconscionable conduct by pressuring suppliers to make retrospective payments, adjust trading terms, and provide rebates to offset perceived profit shortfalls.
The ACCC’s legal action highlights the importance of fair and ethical business practices in the grocery sector, where major supermarket chains hold significant bargaining power over suppliers. By enforcing competition and consumer laws, the ACCC seeks to promote a level playing field for all participants in the grocery supply chain and ensure that consumers benefit from competitive prices and choices.
ACCC’s sustainability guide
In September 2024, the ACCC released a guide to help businesses navigate sustainability claims and avoid greenwashing. The Sustainability Claims Guide aims to assist businesses in making accurate and substantiated environmental claims about their products and services, thereby building trust with consumers and reducing the risk of misleading or deceptive conduct.
The guide provides practical advice on best practices for sustainability marketing, including making clear, specific, and accurate claims, using plain language, and substantiating claims with evidence. It also offers examples of acceptable