ACCC examining expanding digital platform ecosystems

The expansion of mega platforms owned by Alphabet, Amazon, Apple, Meta and Microsoft is on the radar of the ACCC, which will examine digital service providers as part of its five-year Digital Platform Services Inquiry.

The focus follows continued heavy investment into extended sectors, categories and technologies, which the ACCC says is creating a web of interconnected products and services for each of these providers — a situation that leaves customers increasingly reliant.

“Australian consumers and businesses are increasingly reliant on the products and services offered by digital platforms so it’s crucial we examine how these companies are expanding their reach,” ACCC Chair Gina Cass-Gottlieb said.

An issues paper, published this week, poses questions and seeks submissions from consumers, businesses and interested stakeholders about the investment decisions made by digital platforms, the interconnectedness of expanded products and services within each ecosystem, and the potential impacts on competition and consumers.

The interim report will examine products and services offered by digital platform service providers across a variety of sectors and will use examples like the expansion into consumer cloud storage and smart home devices to analyse the relationships between digital platform services and various services offered in their digital platform ecosystems. 

“We’re eager to hear from consumers and business about their experiences with digital platform services within these ecosystems, and how they also use other related consumer cloud storage services and smart home devices within a digital platform ecosystem,” Cass-Gottlieb said.

“Large digital platforms have become an integral part of our daily lives, they have access to enormous user data bases and personal information across their ecosystems.

“This report will assess how that data can be leveraged across products and services within an ecosystem that may prevent businesses from entering and competing,” Cass-Gottlieb said.

The interim report will also examine the expansion strategies used by digital platform service providers and how this has affected interoperability of products and services across ecosystems, and if it has increased consumer lock-in behaviours or other conduct like bundling, tying or self-preferencing to inhibit competition.

Excessive collection and potentially problematic use of personal data or other behaviours such as dark patterns to confuse or manipulate consumers will also be considered.

“Interconnected products, like smart home devices and cloud storage solutions, can provide consumers with a seamless experience that simplifies everyday tasks, but it’s important that competition and consumers are not harmed as digital platforms invest across different sectors and technologies and expand their reach,” Cass-Gottlieb said.

Submissions are due by 5 April 2023 and can be made by emailing digitalmonitoring@accc.gov.au.

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