The Australian Competition and Consumer Commission has signalled a significant increase in enforcement activity in digital markets. For Western Australian businesses that operate online platforms, use digital advertising, or collect consumer data, this shift demands attention.
The ACCC's Digital Platform Services Inquiry has produced a series of interim reports that recommend substantial reforms to competition and consumer protection law as it applies to digital markets. These recommendations include mandatory codes of conduct for designated digital platforms, enhanced merger control for acquisitions by large digital platforms, and stronger protections against unfair trading practices in digital markets.
For WA businesses, the implications are both direct and indirect. Businesses that operate digital platforms — even at a regional level — may find themselves subject to new regulatory requirements. Those that advertise through major platforms like Google and Meta need to understand how changes to platform rules and algorithms may affect their business.
The consumer data right, which has been progressively rolled out across sectors, gives consumers greater control over their data and the ability to direct businesses to share that data with accredited third parties. This reform is designed to promote competition by reducing switching costs, but it also imposes significant compliance obligations on data holders.
Western Australian businesses in the energy and resources sector are particularly affected, as the consumer data right is expected to be extended to the energy sector. Companies that collect and hold consumer energy data will need to invest in systems and processes to comply with the new regime.
We advise businesses to conduct a comprehensive review of their digital practices, including data collection and handling, online advertising representations, terms and conditions for digital services, and compliance with the Australian Consumer Law in the digital context. The penalties for breaches of competition and consumer law have increased substantially, with maximum penalties now reaching the greater of $50 million, three times the benefit obtained, or 30% of turnover.