The Framework

Australia is actively developing new regulations for digital markets, with the Australian Competition and Consumer Commission (ACCC) leading a five-year inquiry into digital platform services, set to conclude in March 2025. The ACCC has proposed implementing mandatory, service-specific codes of conduct for “designated” digital platforms, drawing inspiration from the European Union’s Digital Markets Act (DMA).[1] These codes aim to address issues such as interoperability, transparency, and fair dealings with business users. Additionally, the ACCC recommends strengthening consumer protection laws, including an economy-wide prohibition on unfair trading practices.

Implications for U.S. Technology Companies

The proposed regulations could present significant challenges for U.S. tech companies like Google, Apple, and Meta. The ACCC’s focus on large digital platforms with substantial market power means these companies may face stringent compliance requirements. Mandatory interoperability could limit their control over proprietary platforms, while prohibitions on self-preferencing and exclusive pre-installation agreements might disrupt established business models. Furthermore, the introduction of service-specific codes of conduct could impose additional operational constraints, potentially stifling innovation and increasing compliance costs. 

How China Benefits

Restrictive regulations on U.S. tech companies may benefit Chinese technology firms. As U.S. companies navigate new compliance landscapes, Chinese firms could seize market opportunities by offering integrated services without similar constraints. For instance, if U.S. platforms are required to share data or limit service integration, Chinese competitors might leverage their more flexible structures to attract users and business partners. This shift could enhance China’s influence in the global tech arena, potentially challenging U.S. dominance in key digital markets.[2]

Endnotes